| Understanding New Health Reform |
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Some elements of the legislation will be implemented over the next year while other major features won’t come into play until 2014.
Key Provisions of Health Reform within the First Year *Tax Credits for certain small businesses (including tax-exempt small businesses) that provide coverage to employees *Lifetime limits on benefits will be eliminated, and insurers will be prohibited from canceling coverage retroactively except in the case of fraud *High Risk Pools where individuals lacking health insurance and having pre-existing conditions can enroll to get health insurance coverage. *Dependent Coverage that allows children to remain on their parent’s plans until age 26 and restricts insurers from denying coverage for a child’s pre-existing condition *For Medicare recipients, discounts and rebates will be provided for those who hit the so-called "doughnut hole" in prescription benefits, and the availability of no-cost preventive care, such as some types of cancer screening *Temporary Reinsurance Program to help employers provide coverage to retirees over 55 that are not eligible for Medicare *Those with HRA’s, HRA’s or Health FSAs will need a prescription for any over-the-counter drugs they seek reimbursement for from these accountsKey Provisions of Health Reform in Subsequent Years *Require that insurers take all applicants *Mandate that everyone have insurance (with certain exceptions) or otherwise be subject to a penalty *Assess a fee on certain employers (over 50 full-time employees) who do not provide health insurance coverage for employees, or require that employers provide Free Choice Vouchers to certain employees *Establish State-based Exchanges through which individuals and small businesses with up to 100 employees can purchase qualified health insurance (may be open to larger businesses in the future) *Provide premium tax credits, or subsidies to certain income-eligible individuals to be used towards the purchase of health insurance in the new Exchanges *Prohibit insurers from denying coverage for pre-existing conditions in adults *Increased taxes on high-income earners and "Cadillac Plans" to help finance health reform
As a result of the legislation, it is expected that 30 million additional individuals will obtain health insurance, part of which is made possible through subsidized coverage and the expansion of Medicaid. Much of the financing of the reform will result in increased taxes and fees to individuals and corporations. Written by Tracy Martin, CEO of Martin Financial Group in Princeton, NJ. MFG, a leading insurance broker and general agent, provides personalized broker and claims support and is a top resource for Business and Commercial Insurance and Financial Services. For more information on this subject or about the various insurance options for businesses and individuals, contact Martin Financial Group at 609-356-1500 or visit www.immartin.com |
