Health Care and The Year Ahead

This morning President Barack Obama stood proudly behind a podium proclaiming victory on the health care reform bill he is signing into law. The President was nearly gleeful as he spoke his elegant words about the relief this new bill will bring to the people of the United States.

He praised House Speaker Nancy Pelosi, Majority Leader Harry Reid and committee chairs along with members of Congress for working so hard in getting this bill passed. This bill, he said, was being signed in memory of his mother, and her courageous battle with cancer and her worries as to whether she would be able to pay all of her medical bills. The President also highlighted Marcelas Owens.

Owens is an eleven-year-old boy whose mother became ill. Due to her illness she lost her job. When she lost her job she lost her health care benefits. Owens spoke before Capital Hill in an attempt to explain how devastating the loss of health care can be on families. His mother died at the age of 27, and it is believed her death was due to the loss of health insurance. Bravely and calmly Owens said he did not want any other family to go through the pain that they had gone through.

The new bill will take a four years to fully implement. Some changes will be long in coming. Others will take effect this year. One of the significant changes will be for those who have pre-existing conditions. Insurance companies will no longer be able to exclude those who need the coverage the most.

Also this year, insurance companies will not be able to drop someone should they get severly ill. Neither will they be allowed to set limits on the amount of coverage they will provide.

Kids, or should we say young adults, will now be allowed to remain on a parent's insurance plan until they reach the age of 26. This could be excellent news for those in college, or those not making enough to afford coverage.

The donut hole for senior citizens on Medicare will be changed. Eventually the donut hole will be narrowed and seniors will not have to choose whether they can afford the drugs prescribed for them. As it stands now, after the prescription drug deductible of $310.00 is paid, the insurance plan pays 75% of a drug's cost while the patient is responsible for the remaining 25%. Once the recipient reaches $2,830.00 they have to pay full price for their drugs until the total accumulates to $6,440.00. Once that happens the insurance plan begins to pay again. This year, those seniors who have paid full price in the donut hole mode will receive a $250.00 refund. Not a lot, but anything helps in these times.

Beginning this year there will be free preventive care, meaning no deductibles or co-pays will be charged for these services. This could be a real incentive for those yearly check-ups.

The President also explained that folks will be able to be in an exchange like members of congress have. This exchange, which will be set up later, will consist of a big pool of people being covered under the same company. Theoretically this should lower costs because the more people you have in a group, the cheaper the costs.

Those against the health insurance reform are talking about the tax penalty for those not buying insurance, According to the new law, everyone must have some kind of health insurance or they will be fined. This worries people, and it is understandable. What if you really can't afford health insurance coverage even despite the so-called help you will receive from government subsidies? Some people will be defiant due to youth or stubbornness, and they will rebel by not getting coverage. Is it fair to say that these people should be taxed due to their beliefs?

The bill still has to go to the Senate to be fine-tuned. Who knows what will happend once it gets inside that chamber. President Obama said he expected these refinements to happen swiftly and there was much applause for his sentiment. We will see how it comes out.

Irregardless, change is a-coming. For many it will be a welcomed change. Speaking as someone who pays for insurance out of pocket, I can only hope that the insurance rates the reform is talking about is actually, truly affordable. The other concern; what will happen to the insurance rates once the insurance companies have to start really paying out for those they often ignore or refuse? It's hard to imagine, given the current rates, how this will translate into more affordable options.

Health insurance reform was desperately needed. Let's hope this new direction leads us all to better health and financial security.