The bill orders all states to create an "exchange" where companies offering government-approved plans can sell health insurance. Americans earning up to 400 percent of the poverty level ($103,000 for a family of five) would be eligible for federal subsidies in the form of a refundable tax credit to buy health insurance -- but only if they buy one of the government-approved plans in the government-created exchange.
The government will not pay this subsidy to the individuals purchasing insurance. The U.S. Treasury will pay it directly to the government-approved insurance providers.
"The Treasury would pay the premium credit amount to the insurance plan in which the individual is enrolled," says the committee's "plain English" text.
Four different levels of insurance plans will be available in the exchange -- Bronze, Silver, Gold and Platinum. But every year, the secretary of health and human services will determine what services need to be offered by these government-approved and government-funded plans.
"The Secretary of HHS," says the "plain English" text, "would be required to define and update the categories of covered treatments, items and services within the benefit classes no less than annually through a transparent and public process that allows for public input, including a public comment period."
Under this bill, the government commands individuals to secure insurance for themselves and their dependents. "In order to insure compliance, individuals would be required to report on their Federal tax return the months for which they maintain the required minimum health coverage for themselves and all dependents under age 18," says the text.
The government would enforce this mandate with a fine. "The consequence for not maintaining insurance would be an excise tax of $750 per adult in the household," says the text.
The bill does not similarly order businesses to provide employees with health insurance. However, people who get insurance through their employer will not be eligible for the federal subsidies.
And here is the whip the government will use to drive most Americans into government-approved, government-subsidized, government-controlled health insurance: An employer that decides not to provide health insurance for its workers will be required to pay a fee to the government for each of its workers that receives a federal subsidy. But the total paid to the government by any employer will be capped at $400 times the total number of that employer's workers.
Even though this fee will not be tax deductible, it will be far cheaper for a business to pay the government $400 per worker than to pay a private insurance company thousands per worker for an insurance plan.
The Finance Committee has created an irresistible incentive for American businesses to drop their workers off at the DMV where they can enroll in government-funded, government-approved, government-regulated health insurance plans.