September 23, 2010 – another important date for Health Care Reform. Health Care Reform is the newest media buzz, but it is still such a mystery for so many people. It is hard to understand what changes take place and when. And, it doesn’t help that there are so many misconceptions floating around. So, let me explain the changes being made by Health Care Reform as of September 23, 2010.

Changes Already In Place

$250 Medicare Drug Cost Rebate In June, 2010, checks started being mailed out to an estimated 4 million senior citizens that have reached the “donut hole”. The “donut hole” is the gap in Medicare prescription drug coverage many seniors face when they hit a certain age. Checks will continue to be mailed out monthly throughout 2010 as seniors hit the coverage gap. Small Business Tax Credits The first phase of this provision provides a credit worth up to 35% of the employer’s contribution to the employee’s health insurance, and up to 25% for small non-profit organizations. Up to 4 million small businesses are eligible for these tax credits. It is designed to help them provide insurance benefits to their workers. Expanding Coverage for Early Retirees On June 1, 2010, applications for employers to participate in this program became available. Americans that retire before they are eligible for Medicare and are without employer-sponsored insurance, are forced to pay high rates in the individual market. They watch their life savings dwindle away. To help preserve employer coverage for early retirees until more affordable coverage becomes available through the new Exchanges by 2014, the Affordable Care Act has created a $5 billion program to provide coverage to people who retire early, as well as their spouses and dependents. Early retirement is classified for these purposes as those that retire between the ages of 55 and 65. Get more information on the Early Retiree Reinsurance Program. Pre-Existing Condition Insurance Plans On July 1, 2010, the Pre-Existing Condition Insurance Plan was created to provide new coverage options to individuals who have been uninsured for at least 6 months because of a pre-existing condition. Each state had the option to run this new program in their state or have the Department of Health and Human Services establish a plan in that state. Allowing States to Cover More People on Medicaid Effective April 1, 2010, states are able to receive federal matching funds to cover some additional low-income individuals and families under Medicaid whom federal funds were not previously available. For states that choose to cover more of their residents, this will make it easier to do so. On January 1, 2014, the rest of this provision will go into place where it becomes mandatory that states provide Medicaid to additional residents who wouldn’t normally qualify. Cracking Down on Health Care Fraud Just during fiscal year 2009, $2.5 billion has been returned to the Medicare Trust Fund as a result of efforts to fight fraud. The Affordable Care Act invests new resources and requires new screening procedures for health care providers to boost these fraud-fighting efforts and reduce fraud and waste in Medicare, Medicaid and CHIP. Putting Information for Consumers Online An easy-to-use website, HealthCare.gov, where consumers can compare health insurance coverage options and pick the coverage that works for them became mandated on July 1, 2010.

As you can see, we have already had several important aspects of the Health Care Reform put in place. Some of these provisions are phase 1 of a program that spans over 4 years to complete. The most important thing to remember is that currently, there is not a guaranteed issue plan or an Exchange in which you can purchase affordable insurance. Those changes don’t come into effect until 2014. Try to find a health care plan that you can afford. To get several quotes where you can compare plans and prices for one that fits your needs and budget, contact an insurance agency that handles multiple insurance carriers.

Healthcare certainly isn’t getting any cheaper in the USA, which mean finding the right health insurance plan to suit your budget isn’t an easy thing to do. However if you work out what you need from a health insurance plan, and who and what you need covered, that will be a big help in making the decision about what type of plan will work best for you and your family.

Health Insurance Plans For Individuals

This is pretty straightforward – this is a health insurance plan that’s designed to just cover one person, probably you. If you only have yourself to cover, there’s no doubt that choosing an individual health insurance plan is the right decision to make. However there can still be a wide variation in the cost of an individual insurance plan, based on what type and level of coverage you choose.

An indemnity plan, which is the more traditional type of health insurance plan that most of us are familiar with, covers you no matter which doctor you choose to see and whatever procedures you need to have done. You can choose different levels of deductibles and out-of-pocket limits, so costs can vary. This is generally the more expensive option in health insurance, but that may be worthwhile if freedom of choice is important to you.

You can also get a managed plan, which is similar to an HMO, and these are certainly more cost effective. But in return, you give up most of your freedom of choice. Usually you will have to choose a doctor from an approved list, and specialists can only be seen by referral. However if you’re generally in good health and only see your doctor once a year for a check-up or the occasional minor illness, it may be worth trading off choice for cost. You are still covered for health emergencies; it’s just a little more complicated.

If you want to add dental and prescription coverage, it can usually be added to either type of health insurance plan for an additional cost.

Health Insurance Plans For Families

Again, this is self-explanatory – these are health insurance plans that cover all the members of your family. Naturally, as more than one person is covered, the cost is higher than for an individual plan. Generally speaking, the bigger your family, the more you will pay. The cost can vary enormously based on the gender, ages, whether or not one family member smokes and so on. You can take out an indemnity plan for your family and will have the same freedom of choice as you find in individual plans. If you have multiple people covered, this can be a bonus.

If you’re not so concerned about choice, then financially you’ll be better off choosing a managed health care package for your family. This works the same way as it does for individuals, but will cost more. However it’s still cheaper than an indemnity plan.

Health Insurance Plans For Groups

If you’re an employee, it’s possible that your employer may offer some form of group insurance coverage, and pay some or most of the premium. You can usually still choose between the two main types of health insurance, so the policy you choose will determine the final cost to you.