Health Care Reform & You

By MC Kelby HERWriter

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Are you confused by all health care reform chatter?

Over the next month, EmpowHER.com will discuss the facts about health care reform and explain what it means to you, your family and your bank account. Here are some of the facts:

On March 23, 2010 President Obama signed into law the Patient Protection and Affordable Care Act (PPACA). The federal statute is the direct result of the Obama administration’s health care reform agenda. Immediate changes to health care include:

• Insurance companies can no longer deny coverage to children (under 19) with pre-existing conditions
• Young adults can stay on their parent’s insurance policies until their 27th birthday
• Medicare recipients who fall into a specific coverage gap will get a $250 rebate
• A 10 percent tax on indoor tanning
• Individuals that have not had health insurance for six months will receive a subsidy to enroll in high-risk insurance pools run by the states. (These pools won’t be cheap but they are still a lot better than being excluded. And there is expected to be some advantage due to the wider pool of the uninsured)
• All new insurance plans sold must exempt preventative care and screenings from deductibles. Free preventative care for all!
• Small businesses with fewer than 25 employees receive up to a 35 percent tax credit for providing health insurance to their employees
• No more rescissions. Effective immediately, you can’t lose your insurance because you get sick
• No more lifetime or annual caps on coverage
• All insurers are required to post balance sheets on the Internet and fully disclose administrative costs, executive compensation packages and benefit payments
• Authorizes early funding of community health centers in all 50 states (Bernie Sanders’ amendment). Community health centers provide primary, dental and vision services to people in the community, based on a sliding scale for payment according to ability to pay

In 2011, the new health care bill will set up a long-term care insurance program. Individuals who pay premiums into this system for at least five years will become eligible to receive support with daily living assistance. The senior citizens that fall into the "Medicare doughnut hole" (a coverage gap) will get a 50 percent discount on some drugs. Also, a new fee on drug makers will also be implemented to help pay for the upcoming changes. The fine on withdrawing funds from a Health Savings Account for non-medical expenses will increase by five to 10 percent. Employers will also need to start including the cost of health care on employee’s W-2 forms.

No major changes will occur in health care in the year 2012 under the new health care bill.

In 2013, many of the new taxes and fees that will pay for the new health care bill will go into effect. This will provide funding for the 2014 fiscal year updates to the health care system.

These taxes will include new Medicare taxes on individuals who earn more than $200,000 a year. The wage tax, dividends and interest tax and a small tax on medical devices will also be implemented. In 2013, the new health care bill will also implement a test system in Medicare in which payments are made based on the quality, rather than quantity of health care services. Health insurers will also be barred from charging different premiums to customers based on gender.

In 2014, the majority of Americans will gain benefits from the new health care bill. Exchanges will be created so individuals without employer-provided health care or small business can shop for health care coverage and insurance companies will be barred from denying coverage on the basis of pre-existing conditions. Medicare will also expand to cover all Americans with income up to 133 percent of the federal poverty level (about $27,000 per year for a family of four). Small businesses will also receive a tax credit to help them provide coverage to their employees. The insurance industry will also be required to pay an annual fee to help pay for the exchanges that will cover all citizens that cannot otherwise receive insurance.

In addition to providing subsidies and guaranteed coverage for most citizens, the new health care bill will also require that most people have health insurance. There will be a fine for not carrying insurance of some sort. An independent Medicare board will also be created to help curb Medicare costs if the costs rise more quickly than inflation.

In 2015, the new health care bill will simply continue the new coverage, taxes and fees that are created in previous years.

In 2016, the penalty for individuals who do not purchase health insurance will rise to a $695 minimum.

In 2017, businesses that have more than 100 employees will be allowed to participate in the state insurance exchanges, if the state government allows it.

In 2018, a tax will be imposed on so-called “Cadillac plans” that provide more than $27,500 worth of coverage for a family.

Sources:
http://en.wikipedia.org
Associated Press
Today Show
MSNBC

MC Ortega is the former publicist for the late Walter Payton, Coca-Cola and Dunkin’ Donuts. Ortega is a senior communications and messaging executive specializing in media relations, social media, program development and crisis communications. Also, Ortega is an avid traveler and international shopper. Ortega resides with her partner, Craig, dog, Fionne and extensive shoe collection. Ortega also enjoys jewelry design/production and flamenco dancing.

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We value and respect our HERWriters' experiences, but everyone is different. Many of our writers are speaking from personal experience, and what's worked for them may not work for you. Their articles are not a substitute for medical advice, although we hope you can gain knowledge from their insight.