Washington Matters
Some Health Changes Happen Quickly
While it will take years to fully implement the health care bill, some of its provisions will take effect almost immediately.
By Martha Lynn Craver, Associate Editor, The Kiplinger Letter
March 22, 2010
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Here’s a quick rundown of the provisions in the health care bill that will affect businesses and individuals as soon as 90 days after the bill is signed into law:
•The bill will provide tax credits for small employers with no more than 25 workers and average annual wages of less than $50,000, if they purchase health insurance for employees.
•It will create a temporary reinsurance program for employers providing health insurance coverage to retirees over age 55 who are not eligible for Medicare.
•Individuals with preexisting medical conditions who now have trouble buying insurance will be able to use a temporary national high-risk insurance pool to purchase health coverage to individuals.
•Parents of children up to the age of 26 will be able to buy insurance for their kids under their own group plans.
•Medicare beneficiaries who reach the coverage gap, or doughnut hole, in prescription coverage in 2010 will receive a $250 rebate.
•Insurers will be barred from imposing a lifetime limit on the dollar value of coverage for individual or group plans. Plans may only impose annual limits on coverage as determined by the secretary of Health & Human Services. Insurers will also be barred from rescinding coverage except in cases of fraud, and they cannot use preexisting conditions to exclude kids from coverage.
•The legislation will also require qualified health plans to provide coverage without cost-sharing for certain preventive services, including recommended immunizations, preventive care for infants, children and adolescents, and additional preventive care and screenings for women.
Learn how the new health care legislation will affect your business. Join a special Kiplinger audio conference April 20. Order online now!
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Reader Comments (10)
Posted by: Daniel W Mississippi Viet Nam Vet. at 03/23/2010 06:17:11 AM
What if any immediate changes will be seen in VA benifits care for Veterans? And what are the long term changes to be expected in VA Veterans care from this new bill?
Posted by: Gigglesworth at 03/23/2010 10:08:14 AM
But some GOP congressmen said this bill wouldn't take effect for 4 years. Are you saying they were lying?
Posted by: Vera at 03/23/2010 04:12:10 PM
They weren't lying...the bill got changed many times. Who can keep up with which version is up or who's on first?
Posted by: jamie at 03/23/2010 06:08:07 PM
gigglesworth - how many of the 30-45 million uninsured do you see covered by these immediate regulations?
Posted by: jake md at 03/23/2010 10:51:31 PM
THE TAX CREDITS ARE A BIT MISLEADING...THEY BEGIN TO REDUCE AFTER YOU CROSS TEN EMPLOYEES, AND FURTHER FADE AWAY AS YOU GET TO 25. THE SAME FOR THE SALARIES ...IF UNDER 25K YOU GET FULL CREDITS AND THEN AS YOU APPROACH 50K THEY GRADUALLY PHASE OUT....IT IS SET UP TO DISCOURAGE HIRING ABOVE 10, AND PAYING ABOVE 25K. WONDER WHERE THEY DID THEIR BUSINESS TRAINING. "CHANGE YOU CAN SEE??"
Posted by: Vincent Kinser at 03/25/2010 03:04:38 PM
Boy did I get lucky and I am only considering one item in the Bill (the donut hole)I am on Medicare and will hit the donut hole in Aug. it will cost me over $600.oo per month while in the donut hole....that $250.00 really help me pay my drug bill.It will cost me more then $1200.00 to the end of the year.
Posted by: Phyllis H. at 03/26/2010 01:40:47 PM
When cobra coverage ends, what do I do? I do have pre-existing medical issues.
Posted by: Edwina at 03/31/2010 09:25:18 AM
I've never understood the issue of insurance covering pre-existing conditions. The Portability Act stated that if a person had insurance for a previous 12 months, then changed jobs or insurance companies, the insurance company could not hold a pre-existing condition against that person. Even then if a person had not had insurance within the past 12 months, then a pre-existing condition would not be covered for 12 months, at which time, at the 13th month, pre-existing condition would be covered. Have I misunderstood this?
Posted by: Melony at 04/05/2010 03:41:10 PM
Phyllis H - check with your state to see if State Continuation is available after Cobra ends. Edwina - you are correct, however, if a person with pre-x goes from a group plan to an individual plan, the individual application can be declined for pre-x or the carrier can waiver that specific condition.
Posted by: pwe at 04/06/2010 02:18:35 PM
Someone I know has a combined income of 100,000 but they live in an area with very high taxes and fixed costs(NYC). They do not receive coverage...and one of them works for an outfit with less than 25 workers. First, will the employer have to provide coverage and pay for part of it? Currently, the employer provides coverage which the employee has to pay 100%. In other words the company provides the coverage as a convenience from a provate insurer, but does'nt foot any of the costs. Seocndly, how much of it will they have to pay?