Health Care Reform - What Every American Should Know
What will health care reform look like and what's in it for you?
Health care reform has been a hot topic for years, especially now with Obama's new bill that makes it law that every American have access to affordable health care insurance. The Patient Protection and Affordable Care Act will provide American families and small businesses with expanded access to lower health care cost, in addition it will end the worse practices that health insurance companies have been operating under for decades.
The United States is the only developed country in the world that does not have a publicly funded health care system. Despite having the most expensive health care system on the planet, the U.S population's health is by far the worse with shockingly high mortality rates.
The fact is, every health care system has it's problems. There are 45 million American who are uninsured and 9 million of those are children. The rising cost of health care, malpractice insurance and pharmaceuticals has made it very difficult for families to attain health insurance and if one doesn't have health insurance or cash to pay for a doctor's visit then the only way to be treated is to visit an emergency room.
According to the non-partisan government Congressional Budget Office, this is the biggest health insurance reform in decades. The bill, recently passed by Congress will cost a total of $940 billion and will cover 32 million American adults and children.
What will health care reform look like and what's in it for you?
- Insurance Companies Cannot Discriminate Against children with Pre-existing Conditions. This is effective 6 months after enactment, however starting in 2014 this will apply to all persons with pre-existing conditions.
- Tax Credits for Small Businesses. A tax credit for small businesses who would like to make affordable health insurance available to their employees. Beginning in 2010 the tax credit is up to 35 percent of the premium. In 2014, it will go up to 50 percent of premiums. Having a trusted financial advisor guide you these changes is essential.
- Coverage for Uninsured Americans with Pre-existing Condition - A temporary subsidized high risk pool will be available to uninsured Americans with pre-existing conditions.
- Insurance Companies cannot drop people from coverage when they get sick.
- Medicare Part D Donut Hole Closure - A $250 rebate will be available to Medicare beneficiaries who hit the donut hole in 2010. In 2011 a 50% discount on prescription drugs in the donut hole. The donut hole will be completely closed by 2020.
- Medicare Will Provide Free Preventive Care - this will eliminate co-payments or any out of pocket cost for preventive services.
- Insurance Coverage for Young Adults up to age 26 yrs- Young adults on their parents health insurance plan will be covered up to the age of 26 years old.
- Lifetime Coverage Caps are Banned - Health insurance companies cannot put caps on the amount of lifetime coverage.
- Annual Coverage Caps are Restricted - Annual limits will be tightly restricted.
New Appeals Process
- Access to Community Health Centers - Funding for Community Health Centers will increase, which will ideally double the number of patients in the next 5 years.
- Primary Care Practitioners will Increase
- Cannot be Discriminated based on Salary - It will prohibit health insurance group plans from establishing eligibility rules.
- Outrageous Rate Hikes - Insurance companies will be held accountable for increasing rates that are unreasonable.
When the health insurance reform is fully implemented here's how it should look:
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94% of American Men, Women and children will have health insurance coverage.
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Denial because of pre-existing conditions, or to drop coverage when people get sick will no longer be allowed by the health insurance companies.
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Small business and individuals who cannot afford to buy their own health insurance will be able to pool together and choose from a variety of providers and plans with much lower premiums.
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Seniors will have lower monthly expenses by paying less for their prescription drugs because of the "donut hole" closure.
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Health care reform will save or create more than 2.5 million jobs over the next 10 years, because of a reduction in health care cost and expenses to employers.
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16 million low-income people will have access to health insurance coverage through the Medicaid expansion.
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College graduates will be able to stay on their family plans until the age of 26.
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An additional $11 billion will be given to Community health centers, which will double the number of patients who can be treated.
Although health care reform is led federally, it will be at the state level where implementation will take place. Many states have formed steering committees to start putting federal health care reform provisions in place, right now there are at least five of them; Colorado, Connecticut, Maine, Maryland and Wisconsin -- and other states will more than likely follow suit.
About the Author
Lisa Cintron is Executive Vice President at AdvisorWorld, a website to guide you through the process of finding aCertified Financial Advisor. All supported by "Ask The Experts" feature to ask financial questions to a certified financial advisor, as well as a comprehensive database of advisors, life insurance quotes and compare annuities. http://www.advisorworld.com