Pros of the Healthcare Reform Bill

After more than a year of political debate and legislative jousting, Congress passed a comprehensive health reform package in March of this year. Shortly thereafter President Obama signed the Patient Protection and Affordable Care Act introducing sweeping reforms to our healthcare system.

The highly controversial bill is still being analyzed by many professionals, but there appears to be several pros to the healthcare reform bill.

More coverage – an additional 30 million Americans who are currently uninsured will now have access to healthcare. In fact, 95% of the country is expected to have health coverage by 2014.

No limits – beginning in 2014 there will no longer be any annual or lifetime limits on your coverage. This is a significant benefit for individuals with catastrophic illnesses that require treatment that often cost well beyond the $1 million lifetime benefits limit that typical insurance policies now contain.

No pre-existing conditions – beginning in 2011, coverage cannot be denied for pre-existing conditions for children under the age of 19. By 2014, this will be extended to all Americans regardless of age.

Cheaper prescriptions for seniors – the so called “donut hole” is being closed in the Medicare Part D coverage. Seniors will begin receiving $250 rebate checks in 2010 as the first step in closing this coverage gap.

Insurance for adult dependants – beginning in 2011, children who are still living at home can now remain on their parent’s insurance policy until they are 26 years old. This applies whether these dependent children are a student or not or even if they are married or not.

Expanded Medicaid eligibility – low income individuals/families that earn up to 133% of federal poverty level (FPL) would now be eligible for Medicaid. A family of four earning less than $29,327 would be eligible. This is expected to allow 16 million Americans to join the Medicaid program by 2019.

Low income subsidies – Federal subsidies for insurance premiums will be provided to individuals earning up to 400% of the federal poverty level (FPL) unless they have access to affordable employer coverage. For a family of four, you would receive a subsidy if you earn less than $88,200.