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