The “Affordable Health Choices Act of 2009,” the House health overhaul bill, creates the position of Health Choices Commissioner, or “Insurance Czar.”

The Insurance Czar would be appointed by the President to oversee the Health Choices Administration. This would be the 33rd federal ‘czar’ appointed by President Obama since his January 20, 2009 inauguration.

The appointee would be responsible for establishing and regulating geographically-based Health Insurance Exchanges, determining what benefits and coverages must be included in health insurance plans each year, and assessing fines on employers and individuals who do not provide or acquire health insurance.

The Insurance Czar would also be responsible for regulating private insurers’ marketing activities and use of funds, and for “promoting accountability” of insurance providers both within and outside of the Exchanges in “meeting Federal health insurance requirements.”

Additionally , the Insurance Czar would be privy to individuals’ tax return information, which he or she would use to determine who qualifies for federal subsidies to purchase insurance.

Source: HR 3200 §141-2

The “Affordable Health Choices Act of 2009″ imposes a “surtax,” or income tax increase, on all Americans making $280,000 a year or more.

Under the bill, those making $280,000 ($350,000 for couples) will have their taxes increased by 1 percentage point, those making $400,000 ($500,000 for couples) by 1.5 percentage points, and those making more than $800,000 ($1 million for couples) by 5.4 percentage points.

This would make the top marginal federal tax rate 40.4% – the highest it has been since the Clinton years. If President Obama keeps his promise to let the Bush tax cuts expire (which he reiterated at a Portsmouth, NH town hall on Tuesday) that top marginal rate will increase to 45% – the highest it has been since the Reagan tax cuts of 1986.

If a review in 2013 by the Congressional Budget Office determines the health care overhaul has failed to save at least $175 billion, the bill provides for an automatic doubling of the tax increases on the lower two of those three incomes.

Further, with state income taxes rising across the country, this surtax and automatic 2013 increase would put the top combined federal-state income tax rates in over half of all states at 50% or more.

Source: HR 3200 §59C

Under the Senate Health, Education, Labor, and Pensions Committee’s “Affordable Health Choices Act,” local governments can apply for “community transformation” grants to build jungle gyms, sidewalks, bicycle paths, and grocery stores, to install streetlights, and to establish new farmers’ markets.

The dollar amount of these grants, and of the total “community transformation” earmark program, is left to the discretion of the Obama administration.

Cities can also apply for “community makeover” grants, which can provide them with up to $10 per resident in taxpayer dollars for “beautifying streets.”

Sen. Tom Coburn, MD (R-OK) sponsored an amendment to the HELP Committee bill that would have prevented any funds it made available from being used “to build, develop, or maintain sidewalks, parks, bike paths, or street lights.” The amendment was defeated by party-line vote.

The “Affordable Health Choices Act of 2009,” the House of Representatives’ health overhaul legislation, also contains an earmark for these grants. The House bill sets the amount available for their funding at $1.6 billion.

Sources: “Affordable Health Choices Act,” Title III, Subtitle C
HR 3200, § 3151

The Senate Health, Education, Labor, and Pensions Committee’s “Affordable Health Choices Act” contains an “employer mandate,” or a legal requirement that all American businesses with 25 or more employees offer health insurance to their workers.

The penalty for failing to comply with this mandate to offer employees health insurance is a $750 fine per full time worker per year.

In 2008, employer-provided insurance policies averaged $4,704 a year for individuals and $12,680 for families, according to the Kaiser Family Foundation (p. 2 here). This means employers would be able to save $4,000 per worker (or $12,000 per family) by ending their employee health benefit programs and simply paying the federal government the fine.

Source: Senate HELP Committee bill fact sheet, pp. 7-8.

House Resolution 3200, the “Affordable Health Choices Act of 2009,” fulfills President Barack Obama’s promise that “If you like your health plan, you can keep it” – technically.

Under the Democrat-sponsored bill, existing insurance policies are “grandfathered” into the new, overhauled national health care system, meaning that you have the option to keep your health coverage plan and provider even if they don’t conform to the new standards set by the federal government.

However, beginning the year this bill takes effect, individuals who leave their current insurer for any reason – whether it be moving to a different state or changing to a different employer – will be forced to purchase a new government-approved private plan or to enroll in the government-run, taxpayer-funded “public option” for their health coverage, rather than being allowed to choose coverage similar to that which they had before the advent of Obamacare.

Update: Source: HR 3200, § 102