Health Care and Education Reconciliation Act of 2010 facts for kids
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| Long title | An Act to provide for reconciliation pursuant to Title II of the concurrent resolution on the budget for fiscal year 2010 (S. Con. Res. 13). |
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| Enacted by | the 111th United States Congress |
| Citations | |
| Public law | 111-152 |
| Statutes at Large | 124 Stat. 1029 thru 124 Stat. 1084 (55 pages) |
| Codification | |
| Acts amended | Affordable Care Act |
| Legislative history | |
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The Health Care and Education Reconciliation Act of 2010 is a United States law. It was passed by the 111th United States Congress in 2010. This law was created to make changes to another important law called the Affordable Care Act (ACA). It also included a big part about student loans.
This law was approved by the U.S. House of Representatives on March 21, 2010. The vote was 220 to 211. A few days later, on March 25, the Senate also passed it with a vote of 56 to 43. After some small changes, the House voted again and passed it 220 to 207. President Barack Obama signed the Act into law on March 30, 2010.
Contents
How the Law Was Made
At the end of 2009, both the House and Senate had their own ideas for health care reform. But they couldn't agree on one bill. The Senate's bill, called the Patient Protection and Affordable Care Act, became the main focus. This happened after a senator passed away and was replaced by a Republican.
Working Together on Health Care
Since the Senate didn't have enough votes to easily pass the bill, President Obama and House Speaker Nancy Pelosi had an idea. They suggested the House pass the Senate's bill first. Then, they would pass a new bill to make changes to it. This special way of passing laws is called "reconciliation." It helps move bills forward, especially those about money.
Adding Student Loan Help
The new law also included a section about student loans. This part was added because only one "reconciliation" bill can be passed each year. It was a way to help students and also save money for the government. This helped the overall bill meet the rules for the reconciliation process. It also gave President Obama two important wins: one for health care and one for student loans.
Voting in Congress
The United States House of Representatives voted on the bill on March 21, 2010. They had several votes that day. The final vote on the reconciliation bill was 220 in favor and 211 against. All 178 Republicans and 33 Democrats voted against it.
In the Senate, Republicans tried to change the bill many times, but their attempts failed. However, two parts about Pell Grants (money for college students) were removed. This happened because they didn't follow the special rules for reconciliation bills. So, the bill had to go back to the House for another vote.
On March 25, the Senate passed the bill with the changes, 56 to 43. All Republicans and three Democrats voted against it. Later that same day, the House passed the updated bill by a vote of 220 to 207. This sent the bill to President Obama, who signed it into law on March 30, 2010. This was just seven days after he signed the main Patient Protection and Affordable Care Act.
What the Law Does
The Health Care and Education Reconciliation Act has two main parts. One part changes health care rules, and the other helps with student loans.
Changes to Health Care
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This law made several important updates to the Patient Protection and Affordable Care Act. Here are some of the key changes:
- It increased financial help (tax credits) to make health insurance more affordable.
- It removed special deals that had been given to some senators.
- It lowered the penalty for not having health insurance.
- It aimed to close the Medicare Part D "donut hole" by 2020. This helps seniors pay less for prescription drugs.
- It delayed a tax on expensive health plans until 2018.
- It made sure doctors treating Medicare patients were paid fairly.
- It added a Medicare tax on the investment income of very high-earning families.
- It offered more help to lower-income families to buy health insurance.
** Families with lower incomes would pay a smaller percentage of their income for insurance. ** Their health plans would cover a larger part of their medical costs.
- It set a penalty for large companies (over 50 workers) that didn't offer health insurance.
- It increased payments to primary care doctors who treat Medicaid patients.
- The federal government would pay most of the costs for states expanding their Medicaid programs.
- It gave Medicare patients a 50% discount on brand-name drugs starting in 2011. The goal was to close the coverage gap by 2020.
- It extended rules that ban lifetime limits on health benefits and canceling coverage.
Student Loan Reform
The second part of the law focused on making student loans better. It was similar to another bill called the Student Aid and Fiscal Responsibility Act. Here's what it changed:
- The government stopped paying private banks to give out federal student loans. Instead, the Department of Education now gives out these loans directly.
- It increased the amount of money available for Pell Grant scholarships.
- For new student loan borrowers starting in 2014, they could limit their monthly loan payments to 10% of their income. This was down from 15%.
- For new borrowers after 2014, loans could be forgiven after 20 years of on-time payments. This was a change from 25 years.
- It made it easier for parents to get federal loans for their children's education.
- It provided billions of dollars to help schools that mostly serve students from low-income or minority backgrounds. It also increased funding for community colleges.
Impact on Government Spending
The Congressional Budget Office (CBO) looked at both the health care and education parts of the law. They estimated that the law would reduce the government's debt by about $143 billion over ten years (2010-2019). This was because of new taxes, fees on health companies, and cuts in some government health care programs like Medicare Advantage.
More to Learn
- 111th United States Congress
- Patient Protection and Affordable Care Act
- Health care reform in the United States
