Under the Affordable Care Act (ACA), small businesses and individuals will be offered “robust” coverage and “affordable” premiums on the soon-to-be-running health insurance exchanges.
By grouping together these two traditionally under-served populations, the risk pool will become large enough (theoretically) to allow everyone (most notably those with pre-existing conditions) access to health insurance, and will help keep premiums affordable (again, theoretically).
But there is a problem: small businesses are jumping ship.
According to the National Review Online, “Small firms and the specialized insurers that serve them may have found the lifeboats (to borrow Texas governor Rick Perry’s comparison of … Continue reading
For the last 15 years, my family has purchased an individual health insurance policy. Individual plans, as opposed to employer-based insurance, usually don’t cover vision. We could buy a separate vision policy, but in an average year the premiums would cost more than our annual eye exams, glasses and contacts combined.
Even Medicare doesn’t pay for routine eye exams and corrective lenses, except one pair after cataract surgery.
Of course, eye diseases and injuries (your mother always told you not to run with pointy objects, didn’t she?) are covered as medical care.
But I’ve always wondered why screening exams for … Continue reading
During the presidential campaign last year, Paul Ryan, the vice-presidential candidate, presented his plan for what we all know is much-needed Medicare reform (too many baby boomers; too little money). Under his plan, seniors would choose a “Medicare certified” private health insurance plan and, depending on the senior’s income, a percentage of the premium would be subsidized.
His plan sounds a lot like the new health insurance exchanges that are set to begin in 2014, doesn’t it?
Yesterday, an article on the National Review Online caught my attention because the author presented a compelling scenario by which the government could … Continue reading
Last fall I blogged about an inherent unfairness in our health insurance system. (I know, there’s more than one.) In short, those with employer-sponsored insurance (ESI) generally have lower premiums, lower out-of-pocket costs, and better coverage than those of us that buy health insurance through the individual market.
With the new insurance exchanges, the Affordable Care Act (ACA) is supposed to decrease costs and improve coverage. Because of the law’s mandates for preventive services and essential benefits, coverage will be more equitable with the large, ESI plans. Whether premiums will be more affordable continues to be a topic of much … Continue reading
I was surprised recently when I read the following article on Kaiser Health News: Nursing moms get free breast pumps from health law.
So I went to Healthcare.gov, the official website of the Affordable Care Act (ACA) and found the expanded list of essential benefits/preventive services for women that went into effect on August 1, 2012. Breast pumps, listed under “Breastfeeding Support, Supplies and Counseling,” are indeed considered “preventive” and must be covered without cost sharing (co-pays or deductibles).
According to the factsheet: “Breastfeeding is one of the most effective preventive measures mothers can take to protect … Continue reading
The Pre-Existing Condition Insurance Plan (PCIP) was created by the health reform law and enacted in 2010 to provide coverage for low and moderate-income people who could not buy health insurance because of a pre-existing condition—the “uninsurables”.
The plan was to be funded through 2013 until the law’s signature provision—that insurers could no longer exclude those with pre-existing conditions—kicked in on January 1, 2014.
Sadly, the plan has already run out of money and enrollment was suspended February 16th, leaving many thousands without access to health coverage until at least 2014.
Related story from Kaiser Health News: Feds increase … Continue reading
I posted a couple weeks ago that health insurance companies wanted to increase the
penalty I mean tax on people who ignored the individual coverage mandate. The companies fear the penalty tax, only $95 the first year, is not stiff enough.
Well, according to recently released information from the IRS and the Department of Health and Human Services (overseers of the health law), the insurance companies have cause for worry. Not because so many people will ignore the mandate, but because so many people will be exempt.
Related reading from National Review Online: Obamacare’s pressure points
Who will be exempt? … Continue reading
Yesterday, the IRS finally began processing 2012 tax returns.
In 2014, if and when you apply for individual health insurance through one of the state-run exchanges, it will be important to know your 2012 income. Why? Because that figure will determine whether or not you will be eligible for a federal tax credit to help cover the cost of premiums.
In a previous post, I explained how the federal subsidies will work. In short, individuals and families earning up to 400% of federal poverty level (FPL) will be eligible, and the savings could be substantial—over $10,000 a year in some … Continue reading
Starting in 2014, one of the signature features of the Affordable Care Act (ACA) will be implemented: No adult with a pre-existing condition can be denied health insurance.
But it seems from recent news reports that both the administration and the nation’s health insurance carriers are getting a little nervous about exactly how much that will cost and whether sufficient funds will be available.
In theory, the individual mandate ensures that enough healthy young people buy insurance to keep premiums affordable and provide enough money to cover the care of the already sick. But no one knows with any certainty … Continue reading
I read with concern yesterday that one of the victims of the recent fiscal cliff deal was the program funding the creation of new non-profit health insurance carriers. Consumer Operated and Oriented Plans, CO-OPs for short, were meant to provide some much-needed competition to the private carriers on the health insurance exchanges and keep premiums more affordable.
At least, that was the theory.
But now Congress has sliced the program’s budget from $6 billion to $2.4 billion. And the money is in the form of loans, not grants. Besides the many other challenges facing these start-ups, they have a very … Continue reading