Your Questions Answered: Part 1
November 05 2010
Recently, we asked you to share your questions about health care reform. The response was amazing. Hundreds of you have written in asking us to explain parts of the bill or set the record straight on myths that have been circulated.
We've been sifting through what we've recieved -- and below is a first set of answers. Make sure to check back at AmericasFairHealthCare.org as we continue to publish answers to as many of your questions as we can. And of course, if you have your a question of your own -- you can submit it here.
[Some politicians] say that there have been cuts to Medicare. Is that true? If so, what has been cut? — Douglas from Michigan
Answer: There have been no cuts to Medicare. In fact, health care reform strengthens Medicare buy cutting waste and fraud and making the system more efficient. According to a report issued by the Medicare trustees, the Affordable Care Act has extended the financial solvency of Medicare by over a decade. For more info on how our new health care law strengthens Medicare, check out our blog post here.
How will the law change affect very small business (5 employees) and when will it take effect? — Denise from Delaware
Answer: The Affordable Care Act helps small businesses by providing tax breaks and innovative coverage options. If your business offers health insurance and has fewer than 25 employees, you may be eligible for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. Starting in 2014, "small businesses with generally fewer than 100 employees can shop in an exchange, which gives you power similar to what large businesses have to get better choices and lower prices."
I am 60 and recently retired. I have a 5-year wait for Medicare and have had to get my own health insurance for the 5-year gap. Are there any national pools or provisions in the health care plan that I can enroll in now to save money on my premiums? My understanding is that none of the pools kick in until 2014. — Steven from Washington
Answer: Americans who retire early often fall into the difficult position of searching for affordable insurance without the benefits of Medicare eligibility. Under the Affordable Care Act, individuals 55 and older will be able to participate in the Health and Human Services Early Retiree Reinsurance Program. The program exists to bridge the gap between now and the availability of Health Insurance Exchanges in 2014 by paying "80 percent of health insurance costs, up to $90,000 a year," for each qualifying early retiree. The program has $5 billion in funding to help employers and unions keep early retirees covered. More information can be found at ERRP.gov.
Is it true that my health insurance can now be extended until the age of 26? Should I contact my insurance company to make sure that I stay covered or is it already handled? — Charmaine from Arkansas
Answer: Yes. The Affordable Care Act allows parents to add their children as a dependent on existing health care plans as long as they are under age 26. Young adults will be eligible for this coverage regardless of financial dependency, residency with parent, student status, employment, or marital status. According to Healthcare.gov, "the only exception is if your parent has an existing job-based plan and you can get your own job-based coverage." You should check with you current insurance provider to discuss coverage options, because it will not happen automatically.
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"Under new plans, no child under age 19 will be denied coverage for a pre-existing conditions, period. Adults who have been without insurance for six months and who have been unable to obtain insurance because of a pre-existing condition, can apply for coverage under the Pre-Existing Condition Insurance Plan (PCIP)."
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Insurers can no longer cut someone after the fact.
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New screening procedures are now in place for health care providers to eliminate fraud and waste in the health care system.
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Medicare Part D enrollees who hit the Medicare prescription drug benefit gap in 2010 will automatically receive a $250 rebate check.
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Effective immediately, qualified small employers get tax credits of up to 35% of premiums for offering coverage.
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America's new health care law makes it easier for you to find the quality, affordable health care that you and your family need.
