Expansion of Public Programs--Medicare and Medicaid: Again, this doesn't include the Medicare buy-in proposal currently being scored by CBO. The Medicaid expansion is very significant, and in terms of really expanding coverage and getting people access might be the most critical part of the effort. The program would be expended to cover all poor Americans whose household income is below 133% of the federal poverty level (FPL) as of 2014. Any state that wanted to expand coverage sooner could do so as early as January 1, 2011. The states could limit coverage under this expansion to "benchmark" coverage, a basic package of the essential benefits available through the exchange. However, eligibility would be determined based on modified gross income without expenses factored in, so the eligibility ceiling isn't as high as it would be if the eligibility were determined as it is now for Medicaid--more income will be counted.
To assist the state, the federal government will cover 100% of the costs of expanding it from 2014-2016. For the next two years federal aid would depend on the state's coverage of non-elderly, non-pregnant individuals, and then after 2019, would receive increases based on expansion, up to 95% assistance. The bill maintains CHIP (which has been phased out in the House bill). The bill doesn't increase reimbursement rates for doctors providing care through Medicaid, a problem if that population is increased, since many providers refuse to take Medicaid. The House bill is also more generous, using 150% of poverty level as the cut-off.
The Medicare provisions are fairly significant tweaks intended to improve the quality and effectiveness--as well as contain costs--in the program. It does entail some cuts, the cuts you've been hearing Republicans yammer on endlessly about on the Senate floor in the past two weeks. Those includes most significantly reductions in Medicare Advantage plans, private plans that supplement Medicare that would now have to transition to a payment system based on competitive bid. A lot of the system changes in provider payment, quality and performance based reimbursement and penalties. It contains a number of proposals that would change the way that Medicare pays doctors, moving away from a system that rewards unnecessary tests and towards a system that rewards quality care. It starts to close the Part D "donut hole" in 2010, to be eliminated by 2019. It also created a new 15-member independent Medicare Advisory Board, appointed by the president and responsible for providing recommendations to Congress on reducing excess Medicare cost growth.
http://wwww.dailykos.com/storyonly/2009/12/13/813660/-Key-Elements-of-Senate-HCR-Bill