Financial aid reform in health care bill to increase Pell grants

Included in the U.S. House of Representatives’ Health Care Reconciliation Act of 2010 is a student aid reform package that will change the way students receive and repay financial aid for higher education.

The reform package will save tax-payers an estimated $61 million by cutting out private lenders. The government is expanding their direct lending program so that the interest on federal student loans will be paid directly to the government and not private financial institutions.

Lawmakers are planning to use $36 million of the $61 million to help fund Pell grants.

The health care bill which Obama plans to sign into law today, passed Monday in the House of Representatives, 224 votes to 206.

District One Representative Bennie Thompson was the only Mississippi Representative to vote in favor of the Health Care Reconciliation Act (H.R. 4872).

Travis Childers of District One and Gene Taylor of District Four, both Blue Dog Democrats, as well as Republican Gregg Harper of District Three voted “no.”

Childers said he is not against health care reform but rather the large cost.

“My opposition to this bill lies largely in its high cost, especially in today’s economy,” Childers said. “The President recently announced his plans to enact much stronger language prohibiting federally funded abortion, but I would have preferred to have these provisions included in the underlying legislation, and price remains a grave concern for me.”

Childers also had concerns about the structure of the bill itself.

“I still don’t believe we’ve gotten the legislation right,” he said. “However, I will continue to support commonsense reform provisions and work to change measures that would negatively impact the people of the First District.

I remain committed to effective, fiscally responsible health care reform that makes sense for North Mississippi, and I will continue working with my colleagues on both sides of the aisle to that end.”

Once the bill is signed into action the following will be enacted immediately:
Funding for community health centers will be increased in hopes of doubling the number of patients seen over the next five years

New investments will be made in training programs to increase the number of primary care doctors, nurses and public health professionals.

Federal aid will be provided to states so that they can establish offices for health insurance consumer assistance to help people with the filing of appeals and complaints.

Small businesses will be offered tax credits for up to 35 percent of insurance premiums to make employee coverage more affordable.

The following will be enacted 90 days from the signing of the new bill:
A temporary re-insurance program will be established to help offset the costs of premiums for employers and retirees until the health care exchange are available.

Immediate access to affordable insurance will be available to Americans who are unable to get insurance because of a pre-existing condition.

The following will be effective six months after the signing of the health care reform:
Insurance companies will be banned from dropping people from coverage when they get sick.

Insurance companies will be banned from placing lifetime caps on health care coverage.

Private plans will be required to cover preventive medical services with no co-payments and preventive services will be exempt from deductibles.

Creates an appeals process ensuring that consumers in new health care plans are able to appeal decisions made by their health insurance provider.

Young people will be allowed to remain on their parents’ insurance policies at the parents’ choice until their 26th birthday.

Group health plans will be prohibited from discriminating against potential recipients based on their salary.

New health plans in all markets will be prohibited from denying coverage to children with pre-existing conditions Tight restrictions will be placed on annual limits to health insurance plans to ensure access to needed care.

The following will be effective one year after the signing of the healthcare reform:
Free preventive care will be offered under Medicare without co-payments and preventive services will be exempt from deductibles.

A $250 rebate will be provided to Medicare beneficiaries who were part of the Medicare Part D coverage gap in 2010.

A long-term care insurance program will be created to be financed by voluntary payroll deductions to provide home and community-based services to adults who become functionally disabled.

The following will be effective by 2014:
The small business tax credits will be expanded to cover up to 50 percent of the health insurance premiums.

New health insurance plans in all markets will be prohibited from denying anyone coverage because of pre-existing conditions.