The Healthcare Reform Act of 2010 affects three areas. These three areas are Health Insurance, Medicare and Taxes. Below is a summary and time-line of these events.
Health Insurance
- Effective June 2010: A new program called a “high risk pool” will provide affordable health insurance coverage for uninsured who have a pre-existing condition
- Effective September 2010: New health insurance plans will be required to provide certain preventive care services with no co-pay or deductible.
- Effective the first plan year after Sept. 2010: Health insurance carriers will not be able to cancel policies except for cases of fraud. Health insurers will not be able to set lifetime dollar limits on benefits and annual dollar limits will be eliminated for the most part. Children up to age 26 will be allowed to stay on parent’s health insurance plan. Health insurance will no longer be able to refuse or limit coverage for children with pre-existing conditions.
- Year 2011: Individual will be able to buy into a national voluntary insurance program for long-term in-home nursing home care.
- Year 2013: Those looking to buy health insurance will have the option of purchasing it from newly created state based nonprofit health insurance co-ops.
- Year 2014: Health Insurance companies will not be able to deny or limit coverage, or refuse renewal, to anyone based on medical conditions. Also, their ability to charge higher rates due to health status, gender, or other factors will be limited. U.S. citizens and legal residents will have to purchase health insurance or pay a penalty fee to the federal government. Those with incomes from 133% to 400% of the federal poverty level ( the FPL in 2010 for a family of 4 is $22,050) will receive a tax break or government subsidies to help them pay for their health insurance. Individuals without employer coverage and small businesses will be able to purchase health insurance through state based health exchanges, offering potentially lower costs. Insures will no longer be able to set an annual dollar limit on the benefits an individual may receive. Business with more than 50 employees will have to offer health insurance or pay a penalty to the government.
- Year 2016: Health Insurance carriers will be able to sell their policies in multiple states that participate in special compacts, providing more options for individuals in those states.
- Year 2018: All health care plans will be required to provide certain preventive services with no co-pay or deductible.
If you have any questions or need help with any of your Michigan Affordable Health Insurance needs you can contact a qualified agent through the following web site: www.MyAffordableHealth.com
Medicare Time-Line
- Year 2010: Medicare insured beneficiaries will get a $250 government rebate to help close the prescription coverage gap, also know as the “donut hole”. The “donut hole” will be phased out by 2020.
- Year 2011: Medicare recipients with prescription coverage and in their coverage gap, will receive a 50% discount on brand-name drugs. Health insurance coverage will be extended to provide beneficiaries a free wellness visit, a personalized prevention plan from their doctors and preventive services.
Taxes
- July 2010: A new tax of 10% will be charged for indoor tanning services.
- Year 2010: Businesses with less than 25 employees may get a tax break to help them provide health insurance.
- Year 2011: Tax-free funds in a Healthcare Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA) can no longer be used for over-the-counter drugs unless prescribed by a doctor.
- Year 2013: Medical expenses will be deductible on federal taxes only after they exceed 10% of adjusted gross income (up from the current 7.5%). Those over 65 can deduct expenses over 7.5% through 2016. For individuals earning over $200,000 and couples earning over $250,000 a year, Medicare payroll taxes will increase by about 1%. They will pay a new tax of 3.8% on unearned income, such as dividends and interest. Contributions to flexible spending accounts will be limited to a maximum of $2500 a year (this will be adjusted each year for inflation).
- Year 2018: A new tax will be charged on so called “Cadillac” employer-sponsored health insurance plans that exceed $10,200 for individual coverage and $27,500 for family coverage.
