Under the nation's new health plan, dependents will be insured until age 26
In March 2010, President Barack Obama signed into law The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. The health insurance act regulations are scheduled for implementation in stages from June 21, 2010 through January 1, 2014. The Secretary of Health and Human Services has launched a website called Healthcare.gov to provide citizens with more information on the new health care initiatives. But key regulations will affect Medicare, Medicaid, businesses, insurers and the insured.
Medicare and Medicaid
Medicare and Medicaid will change under the new laws, starting immediately with planned Medicare reductions of $400 billion dollars over the next ten years and an expansion of state-funded Medicaid increasing coverage to individuals up to 150 percent above the Federal Poverty Level. The Medicaid drug rebate for brand-name drugs is set to increase by 23.1 percent and it will extend to cover state-funded Medicaid plans by 2011.
The Uninsured
As of June 21, 2010, adults who have pre-existing conditions and have not had health insurance for six months will be eligible to join a government-run high-risk pool. The new program limits an individual’s out-of-pocket costs to $5950 per year. Starting January 2014, uninsured citizens will face annual penalties of $95 or up to 1 percent of their income, whichever is greater. If still uninsured by 2016, the uninsured will face a penalty of $650 or 2.5 percent of their income, whichever is greater.
The Insured
Many of the regulations of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 will only affect new health care insurance plans. Two immediate changes include the coverage of dependent children until their 26 birthday and a $2500 limit on Flexible Spending Account contributions, which allow payments for health care with pre-tax funds.
Insurers
By 2014, health insurance agencies will be prohibited from refusing coverage or discriminating against individuals with pre-existing medical conditions, charging co-payments for preventive care and medical screening on all new insurance plans and enforcing annual spending caps. The government will also repeal the exemption insurance companies enjoy from anti-trust laws. Insurance companies will be forced to reveal operational expenditures and will be required establish minimum standards for health benefit plans.
New Government Agencies
A number of new governmental agencies have been formed or will be formed under the health insurance regulations imposed by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.
The National Prevention, Health Promotion and Public Health Council are chaired by the Surgeon General and will be responsible for the development of a "National Prevention and Health Promotion Strategy." This is the first new agency to be enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.
The government will also establish non-profit groups called the Patient-Centered Outcomes Research Institute to oversee and guide medical research and the Preventive Services and Community Preventive Services task force that will develop and evaluate health care prevention services.
In 2015, in order to slow the future growth of provider Medicare payments, a new advisory board called the Independent Payment Advisory Board will be enacted. Their mission will be to reduce drug reimbursement rates and cut Medicare and Medicaid spending. The board will be charged with enforcing budgetary limits on Medicare spending.
Taxes
Starting September 2010, all-indoor tanning services are taxed a 10 percent service tax. In addition, an excise tax of 2.5 percent will be charged on all medical devices. By January 2011, the insured will see a new line on their W-2 tax forms disclosing the monetary value of their benefits to the U.S. Internal Revenue Service. At this time, it is unclear if these benefits will be taxed. Employers with more than 50 employees that are not providing health benefits by 2014 will face a $2000 per employee tax penalty.
Tags: Affordable Care, Affordable Care Health, Care Education, Care Education Reconciliation, Care Health, Care Health Care