The Patient Protection and Affordable Health Care Act, also known as the “Health Care Reform Bill”, is a very hot topic. President Obama signed the bill on March 23, 2010. The major changes will take place in 2014, but other changes will be taking place leading up to that point.
The health care bill set in place in March 2010 will largely affect 7 different areas. One – you must have medical insurance. If you don’t purchase it you will be at risk of being fined. If you can’t afford it or your place of employment doesn’t offer it, you can get help from the government. Two - there will be more health care jobs. Because of the bill, there will be 33 million more people who are insured. That means there will be a higher demand in the medical field. Three – kids can stay on their parent’s policy until they’re 26. At the moment most insurance companies don’t allow children over age 19 to be on their parent’s plan. Four – insurance can’t drop you. If you become sick your insurance company can’t drop you like they can now. Five – you can’t be denied insurance. If you have a pre-existing condition you can be covered. Currently, insurance companies turn people down because they already have known health issues. Six – there is no maximum limit on coverage. You will receive the care you need without having a limit on how much it can cost. Seven – there is no waiting time. You don’t have to wait to be approved for health insurance.
Changes that will take place in 2010 include the following: Children can stay on their parent’s plan until they are 26; Medicare recipients will receive a $250 rebate; children can’t be denied coverage for having pre-existing conditions; adults with pre-existing conditions will be eligible for coverage into high risk health insurance pools; insurance companies can’t levy annual limits and lifetime limits on coverage; all new plans must provide coverage for preventative services with no out of pocket cost; all companies that offer health benefits for early retirees will get assistance; all new plans will have to comply with new regulations; small businesses that employ less than 50 people are eligible for a tax credit equal to 35% of their health insurance premiums (this will increase to 50% in 2014).
Changes that will take place in 2011 include the following: Medicare will offer wellness visits for free once a year and personalized prevention plans; seniors enrolled in Medicare Advantage or the Prescription Drug Plan will receive a 50% discount on brand name drugs; the penalty tax on all distributions for nonqualified medical expenses from a Health Savings Account before age 65 will increase from 10% to 20%; an alternative to a cafeteria plan will be presented so that small business can offer tax free benefits without having to deal with administrative costs; individuals making more than $200,000 or married couples making more than $250,000 will have their Medicare payroll tax increased from 1.45% to 2.34%.
Changes that will take place in 2013 include the following: A $2,500 annual cap will be placed on contributions to flexible spending accounts; tax deduction for Medicare Part D will be done away with; a 2.9% excise tax on the sale of medical devices will be put in place (glasses; hearing aids, etc. are exempt); hospital insurance tax will increase 0.9% for individuals who earn more than $200,000 or married couples making more than $250,000; additional requirements on health insurance companies to implement uniform standards for exchanging health care information, electronic communication, and others; the minimum threshold for claiming an itemized deduction for health care expenses will increase from 7.5% to 10% of AGI, but those 65 and older can stay at the 7.5% through 2016.
Changes that will take place in 2014 include the following: All U.S. citizens must have health insurance coverage considered acceptable by the government or pay a fine of $95 in 2014, $325 in 2015, $695 in 2016; eligibility standards are implemented for newly formed health care exchanges; businesses with 50 or more employees will be fined either $2,000 or $3,000 per employee for not offering insurance; group health insurance plans have a maximum waiting period of 90 days; all pre-existing conditions must be covered and no levying because of gender, race, etc.; the eligibility standards for Medicaid will be changed to 113% of poverty for those who are not considered elderly; new annual fees will be levied on all providers.
I think it’s a great thing that health care reform is here! There are so many people that are relying on this and need it so bad! It makes me upset that people don’t understand the importance of this health care bill. It’s not as easy as 1-2-3 to get health insurance because it is so expensive. Many people think kids will be lazy because they can be on their parent’s plan until age 26, but I disagree. I don’t think kids will not work just because they don’t have to pay for their health insurance. I also think there will be a lot of people, myself included, that don’t want to stick to their parent’s plan for that long and just have their own. I’m glad that this plan requires all U.S. citizens to have health care. It’s something we all need, and therefore it’s something we should all be required to have. It’s a relief to know that insurance can’t deny you because of pre-existing conditions or drop you because you’re sick. Isn’t the point of health care, to cover you when you’re ill? Don’t you need health care with you have a condition? The current way the system works is very backwards. Also, there’s no maximum limit on coverage. It will be so much better to get the coverage you need and not worry about how much will have to come out of your pocket. So many people with insurance don’t get the care they actually need because they can’t afford the out of pocket costs. As a personal reference for this, my glasses. The insurance I had when I got my glasses last year only paid so much for an eye exam, lenses and frames. My parents ended up still paying over $100 of what, honestly, they couldn’t afford. I need my glasses, and if I didn’t have them I wouldn’t be able to see. That would make it impossible to do lots of things, like writing this blog! Some people are upset that health care reform isn’t going to go BANG! and happen all at once. But how can it? President Obama isn’t God, he can’t just snap his fingers and give all of America health coverage. Good things take time! If you still aren’t convinced with this whole plan, look around you. See the kid with cancer? It’s going to help them. See the elderly guy that’s shaking and on oxygen? It’s going to help him. See me? It’s going to help me. No matter what bad things anyone’s talking about, it’s going to help you to. It’s going to help all of America. Change is here.
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