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One year ago last month, President Obama signed the health reform act into law. Many parts of the law will not go into effect until 2014. To see a full list of the health reform items and a timetable, see this page. Here is a summary of a few important elements of the Act that have already taken effect:
Extension of Dependent Coverage (Now in effect)
Imagine being a recent college graduate without a job. Right after graduation, you find out that your health insurance coverage through your parents' policy has ended. If you need any medical care, you must pay for it out of pocket. Before health reform, this was the situation for many young people. Many health plans would not cover adult children living away from home unless they were students. Many young adults lacked health insurance. Now, after health reform, individuals up to age 26 can remain on their parents' healthcare plans. It does not matter whether or not they are students and whether or not they live with their parents. However, this rule does not apply to people under age 26 who can get their own health insurance at work. For more information, click here.
Prohibition of Exclusions Based on Preexisting Conditions (Now in effect for children; will be in effect for most adults in 2014)
What if you have cancer and you have no health insurance? You will have trouble finding ny coverage. Most insurance companies will not cover your preexisting condition. Like the student example above, many uninsured individuals with health problems cannot find affordable insurance. The new health reform law stops insurers from excluding most children with preexisting health conditions. By 2014, the new law stops insurers from excluding most adults with preexisting conditions as well. For more information, click here.
Insurance policies that are easier to read and understand (Now in effect)
Health insurance plans are not easy to read. But health reform will make them easier to read and understand. Health reform requires insurance companies to use clear, simple language and standardized definitions to explain each plan's benefits and limits. This will make it easier for consumers to compare health insurance plans from different companies.
Restrictions on Lifetime/Annual Limits (Now in effect)
Before health reform, insurance companies often limited the yearly or lifetime medical expenses covered by a policy. This meant the company would stop paying for a person's healthcare expenses if the medical bills passed the coverage limit. If you had a bad car accident and needed many surgeries, you could go over the limit set by your insurance company. After you hit the limit, you would be responsible for all your healthcare expenses. Now, health reform gets rid of the lifetime and annual limits for most policies. For more information, click here.
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