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News...
April 2, 2010
This Week In Health Care Reform
President Obama finalized his health care reform package this week, signing into law the package of fixes approved by the House late last week. While some of the new provisions won't take effect until 2014, some will be phased in beginning this year.
Health Care Reform
President Obama Signs Final Health Care Bill into Law: On Tuesday, President Obama signed into law the package of changes to the newly enacted Patient Protection and Affordable Care Act. Approved over unanimous Republican opposition in both chambers of Congress, this reconciliation bill increases the overall cost of the health care reform legislation by $65 billion, bringing the new total to $940 billion over the next 10 years.
What Does This Health Care Reform Legislation Mean: The biggest changes to the nation's health care system will not take effect until 2014. Some of the changes include: the creation of insurance marketplaces called "exchanges" where people can shop for insurance; rules requiring insurers to accept all applicants, including those with pre-existing conditions; and an expansion of state Medicaid programs. Some additional provisions will become effective immediately while others will kick in later this year.
These are some of the features of the new health care overhaul bill passed through the reconciliation process and slated to begin to take effect in 2010:
- For new sales and subscribers who change policies after March 23, 2010, insurance companies will be required to make additional changes beginning in approximately 6 months, such as removing any member cost sharing for "preventive" benefits (as defined by the legislation). The renewal product requirements beginning for plan years 6 months after enactment include:
- Coverage for dependents up to age 26;
- Removal of limits on lifetime maximum benefits;
- Temporary federal high-risk pools; and
- Tax credits for small group employers.
Health Care Reform Impacts on Premiums: There are concerns that the new taxes on health coverage will likely increase premiums. Members of the news media report that under the health care overhaul , young adults who buy their own individual insurance will carry a heavier burden of the medical costs of older Americans. This is expected to raise insurance premiums for young people when the plan takes full effect in 2014.
Additional Activities
Several Companies Push to Repeal Provision of Health Care Law: The American Benefits Council, an association representing hundreds of large corporations, urged President Obama and Congressional Democrats to repeal a provision in the health care bill that reduces the tax deductions allowed to companies that provide drug coverage for their retired employees. As a result of this impending provision, companies like AT&T, Caterpillar, Prudential, Deere Co. and 3M have all announced substantial charges against their first-quarter earnings in order to comply with federal accounting rules.
Insurers Will Comply With Law Regarding Children's Coverage: This past week, despite vague language in the new health care law regarding coverage of children with pre-existing conditions, insurance companies assured HHS Secretary Kathleen Sebelius that they await clarification and will comply with the law, effective later this year.
Indiana Joins States' Lawsuit Against Health Care Bill: In response to the new health care reform legislation, the Attorneys General of several states across the country filed lawsuits arguing against the constitutionality of requiring Americans to purchase health insurance. This week, the state of Indiana joined 13 others in a lawsuit filed last week in a Florida federal court. The 14 states - Indiana, Florida, Alabama, Colorado, Idaho, Louisiana, Michigan, Nebraska, Pennsylvania, South Carolina, South Dakota, Texas, Utah and Washington - will become joint plaintiffs in the suit and split the costs of the legal challenge.
Doctors Group Files Lawsuit to Repeal Health Care Legislation: The Association of American Physicians and Surgeons filed a lawsuit in the U.S. District Court for the District of Columbia against HHS Secretary Kathleen Sebelius and Social Security Administration Commissioner Michael Astrue. Attorneys for the group argue that the insurance mandate is unconstitutional. They also argued against the constitutionality of other provisions saying, "If the bill goes unchallenged, then it spells the end of freedom in medicine as we know it."
Rollout of Health Care Reform
Click here to see how Health Care Reform will be implemented year by year.
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