Now what? Some Impacts of Health Care Reform

After a series of complex parliamentary maneuvers, the House approved a massive health care reform package on March 21, 2010, with over $400 billion in revenue raisers and new taxes on employers and individuals. President Obama signed it into law, and the additional congressional steps have been taken.

Health care reform has arrived.   But what does that really mean for individuals and businesses?

The uninsured are clearly the biggest beneficiaries of this legislation, which (starting in 2013) will require all individuals to have “minimum essential coverage” and provide subsidies for those who can’t afford it.   Large businesses will have to provide that coverage (or pay an additional tax) but smaller businesses will be exempt from this requirement and may even qualify for subsidies to help them provide coverage to employees.

Here are a few of the early changes that may affect you and your family sometime this year.

1. Dependent children will be able to remain on their parents’ insurance plans till age 26
2. Many plans will be prohibited from placing lifetime limits on coverage, or cancelling your coverage if you become ill
3. Plans won’t be able to deny coverage for children with pre-existing conditions.
4. People who have been uninsurable due to pre-existing conditions could qualify for insurance through a federal high-risk program.
5. Medicare beneficiaries who hit the “doughnut hole” in drug coverage will get a rebate this year
6. Some preventive care, including some types of cancer screening, will be free from co-pays and deductibles.

This is a complex bill.   For more information, take a look at this summary, or contact your accountant.

Some additional good resources include:
Inc. Magazine: What Health Care Reform Means for Your Business
NY Times: For Consumers, Some Clarity on Health Care Changes