in Search

Money Coach

Health Insurance Reform … Finally!

Health Insurance Reform signed into law by Obama … what does the new law mean in the short term?

Many headlines have been written about the health insurance reform bill signed into law by President Obama this week, but there is still a lot of confusion about exactly what the bill does to improve access to insurance … some of the short-term benefits from health care reform are outlined below:

Benefits starting right away …
  • Increases funding for Community Health Centers to allow for nearly a doubling of the number of patients seen by the centers over the next 5 years.
  • Provides a $250 rebate to Medicare beneficiaries who hit the donut hole in 2010.
  • Provides aid to states in establishing offices of health insurance consumer assistance in order to help individuals with the filing of complaints and appeals.
  • Provides new investment in training programs to increase the number of primary care doctors, nurses, and public health professionals.
  • Offers tax credits to small businesses to make employee coverage more affordable. Tax credits of up to 35 percent of premiums will be immediately available to firms that choose to offer coverage.
Benefits starting soon …
(in 3 – 6 months)
  • Provides immediate access to insurance for Americans who are uninsured because of a pre-existing condition - through a temporary high-risk pool.
  • Bans health plans from dropping people from coverage when they get sick. Effective 6 months after enactment.
  • Prohibits health plans from denying coverage to children with pre-existing conditions.
  • Prohibits health plans from placing lifetime caps on coverage.
  • Restricts new insurance plans' use of annual limits to ensure access to needed care. These tight restrictions will be defined by the Department of Health and Human Services. Annual limits will be prohibited entirely for all plans after 2014.
  • Requires new private plans to cover preventive services with no co-payments and with preventive services being exempt from deductibles.
  • Requires health plans to allow young people up to their 26th birthday to remain on their parents' insurance policy, at the parents' choice.
  • Prohibits new group health plans from establishing any eligibility rules for health care coverage that have the effect of discriminating in favor of higher wage employees.
  • Requires health plans to allow young people up to their 26th birthday to remain on their parents' insurance policy, at the parents' choice.
  • Prohibits new group health plans from establishing any eligibility rules for health care coverage that have the effect of discriminating in favor of higher wage employees.
  • Requires health plans to allow young people up to their 26th birthday to remain on their parents' insurance policy, at the parents' choice.
  • Prohibits new group health plans from establishing any eligibility rules for health care coverage that have the effect of discriminating in favor of higher wage employees.
Benefits starting next year ...
  • Eliminates co-payments for preventive services and exempts preventive services from deductibles under the Medicare program.
  • Requires plans in the individual and small group market to spend 80 percent of premium dollars on medical services, and plans in the large group market to spend 85 percent. Insurers that do not meet these thresholds must provide rebates to policyholders.
  • Creates a long-term care insurance program to be financed by voluntary payroll deductions to provide benefits to adults who become functionally disabled.
Published Mar 28 2010, 05:40 AM by moneycoach
Add to Bloglines Add to Del.icio.us Add to digg Add to Facebook Add to Google Bookmarks Add to Newsvine Add to reddit Add to Stumble Upon Add to Shoutwire Add to Squidoo Add to Technorati Add to Yahoo My Web

This Blog

Syndication