The Health Care Reform Bill’s Affect on Medicare and Insurance

In an earlier blog, I addressed some changes to Medicare brought about by the Healthcare Reform Act. In addition to those changes, the law establishes an Independent Payment Advisory Board to make recommendations on Medicare cost savings. These recommendations will automatically become effective if Congress does not enact an alternative proposal that achieves the same cost savings. Also, the Act ties Medicare Part D premiums to income, meaning more Part B and Part D beneficiaries will be moved into higher income categories and pay higher premiums.

This Act affects the insurance market. Starting late September or early October of this year, insurance companies will no longer be able to deny children coverage based on preexisting conditions. Companies offering individual and group plans also will have to extend dependant coverage to adult children up to age 26 and will not be able to rescind coverage or establish a waiting list for coverage of more than 90 days.

Finally, starting in 2014, insurance companies will not be able to deny coverage to anyone with preexisting conditions.

Next time I’ll review the affects the new law has had on the Medicaid program.

Jerry Shiles
Attorney at Law

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Larry Parman, Estate Planning Attorney, Author, Speaker

Founder and Owner at Parman & Easterday

Larry Parman's dad died at 56 in a farm accident with no estate plan. His family spent two years fighting the IRS and nearly three years in probate. That experience became Larry's life work.

Since founding Parman & Easterday in 1985, Larry has led over 1,000 free, community-service education programs and helped more than 10,000 Oklahoma families go from putting off their estate plan to getting it done. His goal for every client is the same: to become the person their family calls "the one who took care of everything."

Larry is the author of three books: The Straight Shooter's Guide to Estate Planning; Estate Planning Basics; and Guiding Those Left Behind in Oklahoma. He served as Oklahoma's Secretary of State and Secretary of Commerce, and his firm is the only member of the American Academy of Estate Planning Attorneys in the state.

Latest posts by Larry Parman, Estate Planning Attorney, Author, Speaker (see all)

• Choosing the Right Successor Trustee: Key Considerations - October 8, 2026
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• Does Every Estate Go Through Probate? - September 29, 2026