Health Stimulus Plan Unveiled

The economic stimulus bill being debated in Congress would not only allocate spending increases and tax cuts but would also help pull the nation out of recession.

The bill stands to pour billions into healthcare and support Medicaid, the government health insurance plan for the poor as well as help doctors and hospitals make the move from paper to computers. There would also be a substantial subsidy offered to laid- off workers to enable them to retain the same health plans they had from their former employers.

The House is to vote Wednesday on the $ 825 billion bill while the senate is expected to vote on a similar measure next week. The House of Representatives version calls for $825 billion in emergency spending and tax cuts while the Senate's is about $887 billion. Of this $100 billion is intended for health care proposals to include the unemployed and revive the ailing health care system.

These proposed changes by Congress stand to benefit nearly 8.5 million newly uninsured people who have lost their jobs as well as provide Medicaid coverage to many who would otherwise not be covered.

Congressional Democrats and President Obama developed this package in close consultation. Obama aides and advisers said the president would insist on health insurance assistance for the unemployed as part of a final bill, which he wants to sign by mid-February.

Among the proposed changes there would be an $87 billion increase in the federal share for Medicaid, with states being unable to pay for their share due to lost tax revenues in the recession. COBRA, the Consolidated Omnibus Budget Reconciliation Act that allows workers who lose their jobs and thus health insurance to keep the insurance would receive a $25 billion boost. $11 billion would finance Medicaid for unemployed workers who would otherwise not qualify.Among the rest there is a $17.9 billion proposal for health information technology like electronic medical records and electronic prescribing. $ 1.1 billion will be allocated to the Agency for Healthcare Research and Quality, and the National Institutes of Health, to study the comparative effectiveness of various medical tests and treatments.

$1.3 billion has been ear marked for the Transitional Medical Assistance that gives welfare recipients a little extra time on Medicaid, even after they start earning too much to qualify otherwise.

Although most of the aid has been termed as temporary, Republicans feel that states might get accustomed to it and not be able to do without it. They feel the stimulus package is a back door to universal health coverage. "It's raining money," said Representative Michael C. Burgess, Republican of Texas. On the other hand Democrats said the changes took a major step toward achieving their goal of coverage for all Americans.

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