If you've clicked onto any news channel or website today, chances are you're aware the Republican Party officially took control of the House today and that they are out for blood when it comes to health care reform. There is much speculation about whether they will or will not be able to repel the law with a Democratic Senate, President Obama in the White House, the cost, etc. What's funny about all the news channels and websites today is that, for the amount of coverage the health care reform act is getting from them, no one is actually explaining what it is!
The majority of the reform act kicks into effect in 2014, but did you know some really cool reforms went into practice on Jan. 1? I didn't and the more I researched to find out what they were, the more confused I became...and I'm a life and health insurance agent! No matter how you feel about the new law, it is a law so we might as well understand it as best we can, right?
After some world class Googling, I'm going to attempt to breakdown a few of the changes for you:
1.) There's no hiding nutrition
As of March 23, 2011 all restaurants with more than 20 locations will be required to post calorie counts and nutritional facts about all of their food and beverages
on the menu. The FDA still needs to give the final ruling about how this is to be implemented, but as someone who has a serious love of french fries (and who needs to stop turning a blind eye!), I'm in favor of this part of the reform and so is my scale!
2.) Rebates? Priceless
Health insurance providers will now be required to spend a minimum amount of the premiums collected on actual health care for their customers. This means they can no longer justify keeping all your dutifully paid premiums with "administration fees". For large group plans, 85% of the premiums collected must be spent on actual health care and 80% for smaller group plans. According to PBS, the government estimates that up to 9 million (MILLION!) people could be eligible for rebates.
3.) Flex Spending is not so Flexible
Flexible spending accounts turned Walgreens and CVS into a playground, especially if it was strictly employer funded, but as of January 1, 2011, this is no longer the case. While you could once use these accounts for Kleenex, Nyquil and other over-the-counter cold and flu season supplies, you can now only use a FSA account for items prescribed for you by a doctor. You can, however, still use it to cover deductibles and co-pays.
These are just a few of the changes that took place January 1, 2011. Other changes include that children can now remain on a parent's health insurance until the age of 26 and a bonus program for Medicare providers was also put into place. As I said before, finding concise, easy to understand information on this subject was no easy task. If you'd like to read the original articles referenced in this blog, click
here for PBS.org and
here for an article featured in the LA Times.
The majority of the changes affect Medicare recipients. If you are currently on Medicare and have questions about your coverage, contact your provider. Medicare, with it's supplements and coverage options, can be different for everyone and you should seek advice from the professional who knows your situation and plan options the best.