Pardon the length of this post, but for anyone who's more interested in what this law actually does, here ya go:
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Good afternoon,
Since the House of Representatives voted to pass health reform
legislation on Sunday night, the legislative process and its political
impact have been the focus of all the newspapers and cable TV pundits.
Outside of DC, however, many Americans are trying to cut through the
chatter and get to the substance of reform with a simple question: "What
does health insurance reform actually mean for me?" To help, we've put
together some of the key benefits from health insurance reform.
Let's start with how health insurance reform will expand and
strengthen coverage:
a.. This year, children with pre-existing conditions can no longer
be denied health insurance coverage. Once the new health insurance exchanges
begin in the coming years, pre-existing condition discrimination will become
a thing of the past for everyone.
b.. This year, health care plans will allow young people to remain
on their parents' insurance policy up until their 26th birthday.
c.. This year, insurance companies will be banned from dropping
people from coverage when they get sick, and they will be banned from
implementing lifetime caps on coverage. This year, restrictive annual limits
on coverage will be banned for certain plans. Under health insurance reform,
Americans will be ensured access to the care they need.
d.. This year, adults who are uninsured because of pre-existing
conditions will have access to affordable insurance through a temporary
subsidized high-risk pool.
e.. In the next fiscal year, the bill increases funding for
community health centers, so they can treat nearly double the number of
patients over the next five years.
f.. This year, we'll also establish an independent commission to
advise on how best to build the health care workforce and increase the
number of nurses, doctors and other professionals to meet our country's
needs. Going forward, we will provide $1.5 billion in funding to support
the next generation of doctors, nurses and other primary care
practitioners -- on top of a $500 million investment from the American
Recovery and Reinvestment Act.
Health insurance reform will also curb some of the worst insurance
industry practices and strengthen consumer protections:
a.. This year, this bill creates a new, independent appeals process
that ensures consumers in new private plans have access to an effective
process to appeal decisions made by their insurer.
b.. This year, discrimination based on salary will be outlawed. New
group health plans will be prohibited from establishing any eligibility
rules for health care coverage that discriminate in favor of higher-wage
employees.
c.. Beginning this fiscal year, this bill provides funding to states
to help establish offices of health insurance consumer assistance in order
to help individuals in the process of filing complaints or appeals against
insurance companies.
d.. Starting January 1, 2011, insurers in the individual and small
group market will be required to spend 80 percent of their premium dollars
on medical services. Insurers in the large group market will be required to
spend 85 percent of their premium dollars on medical services. Any insurers
who don't meet those thresholds will be required to provide rebates to their
policyholders.
e.. Starting in 2011, this bill helps states require insurance
companies to submit justification for requested premium increases. Any
company with excessive or unjustified premium increases may not be able to
participate in the new health insurance exchanges.
Reform immediately begins to lower health care costs for American
families and small businesses:
a.. This year, small businesses that choose to offer coverage will
begin to receive tax credits of up to 35 percent of premiums to help make
employee coverage more affordable.
b.. This year, new private plans will be required to provide free
preventive care: no co-payments and no deductibles for preventive services.
And beginning January 1, 2011, Medicare will do the same.
c.. This year, this bill will provide help for early retirees by
creating a temporary re-insurance program to help offset the costs of
expensive premiums for employers and retirees age 55-64.
d.. This year, this bill starts to close the Medicare Part D 'donut
hole' by providing a $250 rebate to Medicare beneficiaries who hit the gap
in prescription drug coverage. And beginning in 2011, the bill institutes a
50% discount on prescription drugs in the 'donut hole.'
Thank you,
Nancy-Ann DeParle
Director, White House Office of Health Reform