What the New Health Care Reform Law Means for You?

Now that President Obama has signed the health care reform bill into law, let’s take a look at some of the key provisions of this bill and what it will mean for all Americans either immediately or in the next six months.

Here are several key provisions of this bill, as also amended by the House-passed reconciliation bill:

SMALL BUSINESS TAX CREDITS: offers tax credits to small businesses to make employee coverage more affordable. Tax credits of up to 35 percent of premiums will be immediately available to firms that choose to offer coverage. This will be effective for calendar year 2010. Beginning in 2014, the small business tax credits will cover 50 percent of premiums.

…these tax credits will be a huge help for small businesses who are struggling to pay for out of control premiums and will ultimately lead to coverage being more affordable for employees. The money saved by this provision will result in small businesses being able to create new jobs from the money saved and allow them to further grow their businesses. So not only does this bill provide affordable coverage for Americans, but it also creates JOBS…

BEGINS TO CLOSE THE MEDICARE PART D DONUT HOLE: provides a $250 rebate to Medicare beneficiaries who hit the donut hole in 2010. This is effective for calendar year 2010. Beginning in 2011, institutes a 50% discount on brand name drugs in the donut hole; also completely closes the donut hole by 2020.

…So you ask what is the donut hole? The donut hole “is the difference of the initial coverage limit and the catastrophic coverage threshold, as described in the Medicare Part D prescription drug program…After a Medicate beneficiary surpasses the prescription drug coverage limit, the Medicare beneficiary is financially responsible for the entire cost of prescription drugs until the expense reaches the catastrophic coverage threshold.” This will provide much needed relief for our seniors…

…The Kaiser Family Foundation found that 3.4 million beneficiaries fall within this donut hole. So despite what Republicans want seniors to think about this bill, it actually increases benefits to our seniors…

…Best of all is that this increased benefit is actually paid for, unlike the Medicare Part D benefit that was passed by a Republican-majority…

HELP FOR EARLY RETIREES: creates a temporary re-insurance program (until the Exchanges are available) to help offset the costs of expensive premiums for employers and retirees for health benefits for retirees age 55-64. Effective 90 days after enactment.

ENDS RESCISSIONS: bans insurance companies from dropping people from coverage when they get sick. This is effective 6 months after enactment.

…Americans now have the comfort to know that if they get sick, their insurance company cannot drop them from coverage. This may seem insignificant to folks who are not sick, but to those that have gotten sick and had their coverage dropped this is a big deal. This will prevent insurance companies from bankrupting American families and potentially save family members from a potential death sentence…

NO DISCRIMINATION AGAINST CHILDREN WITH PRE-EXISTING CONDITIONS: prohibits new health plans in all markets plus grandfathered group health plans from denying coverage to children with pre-existing conditions. This is effective 6 months after enactment. Beginning in 2014, this prohibition would apply to all persons.

…So this new law protects “life” by ensuring that health insurance companies cannot deny coverage to children with pre-existing conditions.  This will be extended to all persons in 2014…

BANS LIFETIME LIMITS ON COVERAGE: prohibits health insurance companies from placing lifetime caps on coverage. This is effective 6 months after enactment.

BANS RESTRICTIVE ANNUAL LIMITS ON COVERAGE: tightly restricts the use of annual limits to ensure access to needed care in all new plans and grandfathered group health plans. These tight restrictions will be defined by HHS. This is effective 6 months after enactment. Beginning in 2014, the use of any annual limits would be prohibited for all new plans and grandfathered group health plans.

…The ban of lifetime and annual limits on coverage is another win for American families. No longer will they have to choose between a family member’s health and their livelihood…

FREE PREVENTIVE CARE UNDER NEW PRIVATE PLANS: requires new private plans to cover preventive services with no co-payments and with preventive services being exempt from deductibles. This is effective 6 months after enactment.

…Notice the key word “private” here. Republicans tried to scare folks into believing that the private market would disappear, if this bill were passed. This bill strengthens our private market and implements some responsible, cost-effective new strategies. Folks are more likely to go the doctor when they have insurance and preventive care coverage is completely covered. This will help doctors identify significant health issues earlier and save the system a tremendous amount of money in the long run…

NEW, INDEPENDENT APPEALS PROCESS: ensures consumers in new plans have access to an effective internal and external appeals process to appeal decisions by their health insurance plan. This is effective 6 months after enactment.

…No longer will consumers be subject to an unfair appeals process and will now have access to an independent appeals process. For those of you that have appealed to your insurance company to cover a procedure recommended by your doctor for a child or a loved one, you know how cumbersome and opaque the process. This is provides the transparency and independence so desperately needed…

IMMEDIATE HELP FOR THE UNINSURED UNTIL EXCHANGE IS AVAILABLE (INTERIM HIGH–RISK POOL): provides immediate access to affordable insurance for Americans who are uninsured because of a pre-existing condition – through a temporary subsidized high–risk pool. This is effective 90 days after enactment.

EXTENDS COVERAGE FOR YOUNG PEOPLE UP TO 26TH BIRTHDAY THROUGH PARENTS’ INSURANCE

…For those who are uninsured because of a pre-existing condition, you will now have access to a temporary subsidized high-risk pool. This will provide better pricing for you until an exchange is available and until insurers are barred from discriminating against all persons who suffer from pre-existing conditions (2014)…

…Parents will also be allowed to provide coverage for their children up to their 26^th birthday. This is huge for many of these children, since because of a difficult job market many of those who are unable to find work have to go without coverage. This will allow their parents to take “personal responsibility” for their children and provide them necessary coverage, while the job market continues to improve and they are able to find jobs of their own…

COMMUNITY HEALTH CENTERS: increases funding for Community Health Centers to allow for nearly a doubling of the number of patients seen by the centers over the next 5 years. This is effective beginning in fiscal year 2010.

INCREASING NUMBER OF PRIMARY CARE DOCTORS: provides new investment in training programs to increase the number of primary care doctors, nurses, and public health professionals. This is effective beginning in fiscal year 2010.

…This increased funding of Community Health Center will help to ensure that patients are seen in a timely manner and will ultimately lead to JOBS. That’s right, JOBS. Not only does this bill provide for much needed health care reform, but it also doubles as a JOBS bill…

These are just some of the immediate changes; there are plenty of other great changes that will be realized in the years to come. Of course, there are always things that can be improved upon and I would welcome any idea that improves upon this new law going forward. The reality is that, although not perfect, this legislation provides the critical framework of long overdue health care reform – one hundred years in the making.

As I mentioned previously, health care reform will also help reduce the deficit by more than $1 trillion.  Not to mention that CBO has also said that those who already have insurance will experience a decrease in their premiums.

So let’s get something straight: it reduces the deficit, provides many positive health care reform provisions and creates jobs. Oh yeah, the Republicans voted unanimously to reject all of this. It’s bad enough that the party of “no” has regularly given the finger to Democrats, but it’s a whole other thing when they give it to the American people.

So how do Republicans plan on moving forward and working with Democrats on other very important issues facing this country? If you listen to Sen. McCain (R-Ariz.), they don’t plan to:

There will be no cooperation for the rest of the year. They have poisoned the well in what they’ve done and how they’ve done it.

Well that sounds productive. The premise that this statement is based on is fatally flawed. Republicans have been anything but cooperative, up until this point. The fact is that Democrats have tried to work with Republicans, even incorporating several of their ideas into the recently signed health care bill.

The Republicans have simply decided that it is all or nothing and that they don’t want to play ball. This whole “I didn’t get my way on everything, so I’m going to throw a temper tantrum and go home” is not the type of leadership that Americans deserve.

I say let’s give Sen. McCain and other Republicans their wish come November and send them home, starting with Rep. Rob Wittman (R-Montross)!