From AAIA Capital Report

The U.S. House of Representatives voted 220-211 to pass health care reform legislation, late Sunday night. The legislation will be paid for by raising $438 billion though new taxes and fees on businesses, families and insurers. The late-night vote was to approve the Health Care and Education Affordability Reconciliation Act, H.R. 4872, modifying certain provisions of the Senate-passed health care bill, H.R. 3590, which the House passed earlier in the day by a vote of 219-212. Both of these votes on Sunday failed to gain the support of a single Republican and were opposed by more than 30 Democratic members.

The bill will affect small businesses in a number of ways, but many provisions will not enter into effect until 2014. By 2014, states will be required to set up Small Business Health Options Programs, referred to as "SHOP Exchanges," which will allow small businesses to pool together to purchase insurance, lowering premiums in the small-group market by a estimated 1 to 4 percent per year. In 2014, businesses with more than 50 employees will be required to offer health care to employees or risk paying a $750 fine per full-time employee if even one employee qualifies for a premium subsidy in the exchange by earning less than 400 percent of the federal poverty level.

Additional revenues would be raised by imposing a 40 percent tax on the portion of the so-called "Cadillac" health care plans that exceed a $10,200 for an individual or $27,500 for a family plan limit. These penalties would be paid by insurance companies, but many health care experts believe that these costs will be passed along to plan holders.
  
The Senate is expected to take up consideration of the House-passed reconciliation bill this week, needing only 51 votes to pass the legislation. If the House amendments survive the reconciliation process, the $750 penalty for not providing insurance would rise to $2,000 per employee; and individuals earning more than $200,000 or families earning more than $250,000 will be subject to a 3.8 percent surcharge on investment income to help finance the legislation.