To My Boomer Women and Young Ladies,I don't know if you've learned about the ins & outs of the new healthcare reform, and I don't care what your political party is. You see, we are ALL individuals trying to make better lives for ourselves, husbands/partners, children, other loved ones and more.
This is a world about "survival of the fittest". Some of us have everything we need to make healthy strides in this life. But if your heart cares that human life as we know it continues on in a better way, you will see the value in changes to health care in the United States.
I mentioned in a previous blog that I have arthritis. It has impacted my work decisions, social activities, sleep, emotional stability at times, and even my relationship with my son. I've always had employer healthcare and utilized it for medical assistance with the arthritis pain.
When I changed employers in the mid 1990s I received a letter from my new healthcare insurance company stating that my records showed I had been to a rheumatologist to receive arthritis care. This labeled me as having a pre-existing condition. Because of this, the insurance company informed I would have to wait 6 months before I could receive coverage to pay for my healthcare. SIX MONTHS????? Were they kidding?? At the time I needed medication from my physician. So for six months all of my medical expenses came out of my pocket. I was very angry and disturbed about this; it's affect on minimizing my discretionary income, ability to save money, and more.
Yet, I was very fortunate. There are people with HUGE medical responsibilities who cannot afford to be without healthcare for even one hour let alone six months. My heart hurts for those who die everyday because they could not obtain the healthcare they needed.
So, President Obama decided to change that. And it wouldn't have mattered to me if a Republic, Democrat or Independent changed this - I DON'T CARE! As long as SOMETHING was done to help the people of the United States have greater access to healthcare - to live longer and make us a stronger nation.
Let's take a look at what this healthcare reform is all about. See the following:
The Patient Protection and Affordable Healthcare Act, more commonly referred to as the "healthcare bill", has taken over a year to craft and has been a lightning rod for political debate because it effectively reshapes major facets of the country's healthcare industry.
Here are 10 things you need to know about how the new law may affect you:
1. Your Kids Are Covered
Starting this year, if you have an adult child who cannot get health insurance from his or her employer, and is to some degree dependent on you financially, your child can stay on your insurance policy until he or she is 26 years old. Currently, many insurance companies do not allow adult children to remain on their parents plan once they reach 19 or leave school.
2. You Can't Be Dropped
Starting this fall, your health insurance company will no longer be allowed to "drop" you (cancel your policy) if you get sick. In 2009, "rescission" was revealed to be a relatively common cost-cutting practice by several insurance companies. The practice proved to be common enough to spur several lawsuits; for example, in 2008 and 2009, California's largest insurers were made to pay out more than $19 million in fines for dropping policyholders who fell ill.
3. You Can't Be Denied Insurance
Starting this year your child (or children) cannot be denied coverage simply because they have a pre-existing health condition. Health insurance companies will also be barred from denying adults applying for coverage if they have a pre-existing condition, but not until 2014.
4. You Can Spend What You Need To
Prior to the new law, health insurance companies set a maximum limit on the monetary amount of benefits that a policyholder could receive. This meant that those who developed expensive or long-lasting medical conditions could run out of coverage. Starting this year, companies will be barred from instituting caps on coverage.
5. You Don't Have To Wait
If you currently have pre-existing conditions that have prevented you from being able to qualify for health insurance for at least 6 months, you will have coverage options before 2014. Starting this fall, you will be able to purchase insurance through a state-run "high risk pool", which will cap your personal out-of-pocket expenses for healthcare. You will not be required to pay more that $5,950 of your own money for medical expenses; families will not have to pay more than $11,900.
6. You Must Be Insured
Under the new law starting in 2014, you will have to purchase health insurance or risk being fined. If your employer does not offer health insurance as a benefit or you do not earn enough money to purchase a plan, you may get assistance from the government. The fines for not purchasing insurance will be levied according to a sliding scale based on income. Starting in 2014, the lowest fine would be $95 or 2.5% of an individual's taxable income by 2016. There will be a maximum cap on fines.
7. You'll Have More Options
Starting in 2014 (when you'll be required by law to have health insurance), states will operate new insurance marketplaces - called "exchanges" - that will provide you with more options for buying an individual policy if you can't get, or afford, insurance from your workplace and you earn too much income to qualify for Medicaid. In addition, millions of low- and middle-income families (earning up to $88,200 annually) will be able to qualify for financial assistance from the federal government to purchase insurance through their state exchange.
8. Flexible Spending Accounts Will Become Less Flexible
Three years from now, flexible spending accounts (FSAs) will have lower contribution limits - meaning you won't be able to have as much money deducted from your paycheck pre-tax and deposited into an FSA for medical expenses as is currently allowed. The new maximum amount allowed will be $2,500. In addition, fewer expenses will qualify for FSA spending. For example, you will no longer be able to use your FSA to help defray the cost of over-the-counter drugs.
9. If You Earn More, You'll Pay More
Starting in 2018, if your combined family income exceeds $250,000 you are going to be taking less money home each pay period. That's because you will have more money deducted from your paycheck to go toward increased Medicare payroll taxes (my side note: you better start looking for tax shelters to help you keep more income). In addition to higher payroll taxes you will also have to pay 3.8% tax on any unearned income, which is currently tax-exempt.
10. Medicare May Cover More or Less of Your Expenses
Starting this year, if Medicare is your primary form of health insurance you will no longer have to pay for preventive care such as an annual physical, screenings for treatable conditions or routine laboratory work. In addition, you will get a $250 check from the federal government to help pay for prescription drugs currently not covered as a result of the Medicare Part D "doughnut hole".
However, if you are a high-income individual or couple (making more than $85,000 individually or $170,000 jointly), your prescription drug subsidy will be reduced. In addition, if you are one of the more than 10 million people currently enrolled in a Medicare Advantage plan, you may be facing higher premiums because your insurance company's subsidy from the federal government is going to be dramatically reduced.
Conclusion
Over the next few months, you will most likely receive information in the mail from your health insurance company about how the newly signed law will affect your coverage. Read the correspondence carefully and don't hesitate to ask questions about your policy; there may be new, more affordable options for you down the road.
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