A New Epoch in Health Insurance

Over the Christmas holidays, the Senate gave the United States the “gift” of health care insurance reform legislation.

Right now federal lawmakers are hard at work bringing the health insurance bill passed by the Senate and the one passed by the House into accord. Later this month or early next month the legislation most likely will be signed into law. This will mark a new epoch in how people go about paying for the healthcare they receive. Here are a few of the changes that appear to be coming our way:

• Those who do not have health care insurance provided through their employers, Medicare, Medicaid, or private individual insurance will be required to buy private health insurance.

• Those who do not have health insurance will be fined and possibly face criminal prosecution.

• The Internal Revenue Service (IRS) will be empowered to identify and enforce fines for noncompliance with the new regulations.

• People who earn up to 4 times the U.S. federal poverty level (about $80,000 for a family of 4) likely will qualify for tax credits to help pay for private health insurance.

• Those without health insurance might be able to purchase lower cost coverage through government-managed health insurance exchanges that require private health insurers to offer policies on a not-for-profit basis.

• Companies that employ 50 or more employees will be required to offer health care insurance if they do not already do so. Companies that do not comply with the new regulations will be fined up to $750 per employee.

• Health insurance providers will offer benefits to everyone who enrolls without limitations for preexisting conditions.

• Health insurance providers will not be allowed to charge as much as they do now based on age differences, gender differences, or any other factors that amount to higher risk.

• Health insurance companies will not be able to limit benefits paid over a lifetime of the insured.

If you are among the uninsured, I do not recommend waiting for these mandates to be implemented. That will not be until 2013 at the earliest. It is important to get some kind of policy in place now, at least to cover major medical bills that might arise from an accident or serious illness.

In addition, there will be two national elections which may or may not affect which of these provisions actually go into effect. Until then, there will be many private health insurance I will be happy to help you explore.