The dust is starting to settle a little. I have been reading about this and just walked out of a 90 minute seminar sponsored by the National Association of Health Underwriters. I am a proud member. You will see some of the main points below.
This is 2500 page bill. There are still a lot of questions that need to be answered. Some of this is already being challenged in court. But for now this is what we know.
- You can keep your current coverage. However, if you make a plan change you will be required to purchase your coverage through an exchange run by state governments.
- By 2014 each state will be required to have the exchanges up and running. Exchanges will be shopping places for people to purchase insurance. They may just be websites where you can purchase your coverage.
- New high risk pools will be available soon for people who cannot buy coverage because of their health conditions. Missouri already has a high risk pool.
- Within 6 months lifetime limits on insurance policies will be gone. Many policies now have a five million dollar lifetime limit.
- Children will be able to stay under their parents coverage until age 26 regardless of student status. Missouri and Illinois already have laws similar to this.
- In 2014 there will be no more pre existing condition limitations. Within six months there will be no more pre existing condition limitations for children under age 19.
- Waiting periods for new hires will be no longer than 90 days.
- The government will establish a federal review board for insurance premium increases.
- The government will establish medical loss ratios for insurance companies.
- Health Savings Accounts are still available. However, the penalty for non medical withdrawls is going up from 10 percent to 20 percent. You will not be able to purchase over the counter drugs with money from your health savings account.
- Employers will be required to offer employees a public long term care program. However, employees will not be repuired to purchase it.
- In 2011 employers will be required to include the cost of insurance on the employees W2 form. This is for informational purposes only and is not taxable to the employee.
- There will be a two dollar federal tax per enrollee enrolled in a health plan. There will also be a .9% Medicare Hospital Insurance tax. There is also a 3.8% Medicare tax for single people making more than $200,000 and married couples making more than $250,000.
- Your contributions to your Flexible Spending Accounts will now be limited to $2500 a year.
- In 2014 insurance will be issued on a guaranteed issue basis. No pre existing conditions. Rates will be based on age and tobacco use.
- In 2014 there will be an individual mandate to purchase coverage or face a fine. The exact amount of the fine is undetermined. But it could be anywhere from 1 to 2.5 percent of gross household income. Exceptions to the mandate are as follows: Religious objectors; Can’t afford it; Members of indian tribes; Illegal aliens and people with no income.
There is more to come on this. I hope this helps and I will keep you all posted. Mark
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