The high cost of healthcare is the primary problem with our current healthcare system. Unfortunately, the federal health reform bill passed by Congress and signed into law by President Barack Obama does little to rein in these costs.
With an unworkable individual mandate, tens of billions of dollars in new insurer fees and taxes, expansions of Medicaid and increase in dependent ages, tight limits on age rating and high minimum benefit levels, this bill will make private health insurance unaffordable for millions of Americans who are currently insured. And all of the cost increases happen long before anyone reaps the benefits of the coverage changes to take place approximately four years down the road.
Here's what to expect: in 2010, lifetime maximums will be eliminated, as will denials of coverage based on preexisting conditions for children under 19 and children will be able to stay on your policy until age 26. Medicare enrollees that enter the so-called "donut hole" can look forward to a $250 rebate.
In 2011, employers will be required to disclose the value of health benefits on W-2 forms and employers with less than 100 workers will be required to enroll employees in a national public long-term care program reaping the benefit in future years.
In 2012, insurers will have to provide a summary of benefits to all enrollees or face a $1,000 fine per enrollee for willful failure to provide the information. Group plans will be required to annually submit reports to the federal government as to whether or not the benefits meet established criteria. Employers will have to provide notice to employees informing them of the existence of state-based exchanges.
The cap on reimbursement to physicians treating Medicare patients will likely cause a critical drop in available physicians. Medicare Advantage plans that are thriving in our area may not survive.
Expect more taxes in 2013. There will be a $2 premium tax on each individual covered to fund comparative effectiveness research. The threshold for claiming medical expenses on itemized tax returns will be raised to 10 percent from 7.5 percent of adjusted gross income. The Medicare payroll tax will be raised .9 percent for individuals earning more than $200,000 and married couples with incomes over $250,000. A tax will be implemented on plans with values that exceed $8,500 for individual coverage and $23,000 for family coverage.
In 2014, plans are prohibited from including annual benefit limits, denials of coverage based on preexisting conditions will be eliminated and a penalty will be imposed for not purchasing health insurance. Employers with an average of 50 or more employees are subject to an annual fee if coverage is not offered and health insurance companies will begin paying fees based on market share. There is no cost savings in the required provisions and premiums are sure to increase along with added fees and more taxes.
This bill does not curb costs, improve wellness, rein in frivolous lawsuits or expand consumer choice. It will be a challenging five years. But where there is a challenge, there is also opportunity.
