Coverage for young adults: Parents will be able to keep their children on their health policies until they turn 26.

Small-business tax credits: Small businesses (fewer than 25 employees and average wages under $50,000) that offer health care benefits and contribute at least 50 percent of the premium will be eligible for tax credits of up to 35 percent of their premium costs for two years. The credit rises to 50 percent of their premium costs in 2014.

Preexisting Condition Insurance Plan (PCIP): People with preexisting conditions who have been uninsured for at least six months will have access to affordable insurance through a temporary, Preexisting Condition Insurance Plan in their state. Premiums will be based on the health status of a standard population and cannot vary by more than a factor of four based on age. Annual out-of-pocket costs will be capped at $5,950 for individuals and $11,900 for families.

New insurance rules: Insurance companies will be banned from rescinding people’s coverage when they get sick, and from imposing lifetime caps on coverage. Annual limits on benefits are phased out by 2014.

Protection for children: Insurers can no longer deny health coverage to children with preexisting conditions or exclude their conditions from coverage.

“Doughnut hole” rebates: Medicare will provide $250 rebates to beneficiaries who hit the Part D prescription drug coverage gap known as the “doughnut hole.”

Preventive care: All new group and individual health plans will be required to provide free preventive care for recommended preventive services and immunizations. In 2011, Medicare also will provide free preventive care.

Payment reform: A Medicaid demonstration project will enable safety-net hospitals in up to five states to move from a fee-for-service payment model to a global fee model. Medicare will also take temporary steps to ensure that rural areas are protected from fluctuations in payment levels to physicians and hospitals.

Limits on non-medical spending by health plans: Health plans in the large-group market that spend less than 85 percent of their premiums on medical care, and plans in the small-group and individual markets that spend less than 80 percent on medical care, will be required to offer rebates to enrollees.

“Doughnut hole” discounts: Medicare beneficiaries in the Part D prescription drug coverage “doughnut hole” will receive 50 percent discounts on all brand-name drugs. By 2020, the “doughnut hole” coverage gap will be closed.

Physician quality reporting: Medicare will launch a Physician Compare Web site where beneficiaries can compare measures of physician quality and patient experience. Medicare's Nursing Home Compare Web site will publish more data about nursing facilities, including summaries of substantiated complaints.

New payment and delivery approaches: A new Center for Medicare and Medicaid Innovation will test reforms that reward providers for quality of care rather than volume of services. Medicare will increase payment for primary care physicians by 10 percent for primary care services.

Long-term care insurance program: Establishes a national, voluntary insurance program for purchasing community living assistance services and supports (CLASS). Participating employers will be required to automatically enroll employees 18 and over, but employees will have the option to opt out of the program.

Hospital readmissions: Medicare will reduce payments to hospitals for potentially preventative readmissions for select conditions. Hospital readmission rates for these conditions will be published on the Hospital Compare Web site.

Accountable care: Medicare will launch a program that encourages providers to organize into accountable care organizations, which will share in savings generated by meeting quality targets and reducing costs.

Administrative simplification: Health insurers must follow administrative simplification standards for electronic exchange of health information to reduce paperwork and administrative costs.

Payment reform: A Medicare pilot program will evaluate how payment for post-acute services can be bundled with payment for an episode of care such as surgery. States will pay Medicaid providers rates that are at least equal to Medicare payment rates for primary care delivered through December 31, 2014.

Flexible spending limits: Contributions to flexible spending accounts (FSAs) will be limited to $2,500 a year, indexed to the Consumer Price Index (CPI).

Medicare taxes: In addition to the 1.45 percent employee portion of the Medicare Hospital Insurance tax currently imposed on wages, a 0.9 percent Medicare tax will be imposed on every taxpayer who receives wages or self-employment income in excess of $200,000 ($250,000 adjusted gross income in the case of a joint return). Also, a new 3.8 percent tax will apply to “unearned” income for certain high-income taxpayers.

Essential benefits package: The Department of Health and Human Services will establish an essential standard benefits package for policies sold in the exchanges and individual and small-group markets with a choice among tiers of plans (bronze, silver, gold, and platinum) that have different levels of cost-sharing.

Independent payment advisory board: A new independent payment advisory board within the executive branch will work to identify areas of waste and federal budget savings in Medicare. The board’s recommendations must not ration care, raise taxes, or change Medicare benefits, eligibility, or cost-sharing.

High-cost insurance plans: A 40 percent excise tax will be levied at the insurer level on policies with premiums over $10,200 for individuals or $27,500 for family coverage. The premium thresholds are higher for retirees and workers in higher risk industries and are adjusted for the age and gender of workforces.