(Continued series of facts on the new Health Care Law. Source: AARP)
This year, medical costs will help bankrupt 650,000 American households — including many who thought they had decent insurance until diagnosed with a serious illness.
- The law sets certain standards that all insurers must meet. All health plans offered to those who buy health insurance on their own or in small groups include a set of “essential health benefits.”
- Prior to the law’s passage, we saw “a race to the bottom, with insurers cutting benefits to lower premiums,” says Shana Alex Lavarreda, Ph.D., director of health insurance studies for the UCLA Center for Health Policy Research. “The essential health benefits set a standard for insurance. Anything below that is not true health insurance.”
- Caps annual out-of-pocket medical and drug expenses up to an estimated $6,400 for individuals and $12,800 for families. In case of serious or long term illness, families know what their total costs are up front and can plan for it in their budget. (Update: This provision has been delayed)
- Some people are worried about a doctor shortage because more people will be able to see a doctor. The law funds training for new primary care doctors.
If you have friends or family in need of health insurance or better coverage, let them know open enrollment begins on October 1, 2013. Don’t risk them being a part of the 650,000 households.
The health care law means you’ll get more from your Medicare
- The law adds resources to fight fraud, scams and waste, and helps the Medicare program save money.
- Medicare now covers a yearly wellness visit and preventive care at no cost to you. This includes cancer, cholesterol, diabetes screenings and more.
- Many experts believe the wellness/preventive care benefit could help rein in the nation’s rising medical costs. The idea is to get people to see doctors and make healthier choices before they get sick and run up medical bills.
- If you have Medicare Part D, and you reach the coverage gap or “doughnut hole” in 2013, you will get a 52.5 percent discount on brand name prescription drugs and a 21 percent discount on generic drugs while in the coverage gap.
- If you have questions on how the new Health Care Law affects a current situation that you would like us to research, contact us.
