Posts Tagged - ‘health insurance’

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In The Meantime: Sebelius Tries To Get Health Insurance Companies’ Cooperation

Friday, July 9th, 2010

Image: whoohoo120 under CC 3.0

The intention of the healthcare reform law is to increase access to insurance. It largely attempts to do so via stringent regulations. However, most of those regulations will not become effective until 2014.

The gap is a serious issue. Between now and then, health insurers will still be able to deny coverage to people with pre-existing conditions. Secretary of Health and Human Services Kathleen Sebelius is asking for their cooperation to help remedy this dilemma.

Doing so will probably be quite difficult, since the Obama administration has taken a largely adversarial role against providers of health insurance plans in the past. According to Sebelius, their goal is to stabilize the private sector by promoting the elements that could increase their sales (e.g. tax credits for small businesses).

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Missouri Launches Its Own Health Insurance Reform Lawsuit

Thursday, July 8th, 2010

Image: Allen Gathman under CC 3.0

It started with Virginia. Then, Florida and 20 other states banded together. Now, another state has joined the ranks of those suing over the Obama administration’s health insurance reform law.

Republican Lieutenant Governor recently filed another similar lawsuit, which contends that requiring almost all residents to purchase Missouri health insurance (as one of the primary statutes does) is unconstitutional.

Why didn’t Missouri join the class-action suit? It is unclear; unlike Virginia, it doesn’t have its own separate law against the compelled purchase of health care that gives it separate standing–however, a measure to pass one is currently pending on their August primary ballot.

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Healthcare Reform Complicates Tax Reporting

Thursday, July 8th, 2010

As most know, the healthcare reform law includes an affordable individual health insurance mandate, intended to bring more people into the pool and make health care less expensive for all.

According to the provision, the IRS is responsible for enforcement of the medical insurance mandate. Non-exempt individuals or employers who violate it will charged penalties on their tax returns. However, there are doubts that the Internal Revenue Service is up to the task.

The requirement also creates more complications for business and nonprofit accountants when filing tax returns. In an attempt to reduce underreporting of income (which would reduce federal funding for medical insurance reform), they will now be responsible with keeping records of the 1099 forms they will have to have for all transactions over $6,000, as of 2012.

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Medicare & Medicaid Head Named Via Recess Appointment

Wednesday, July 7th, 2010

Image: AlexJohnson under CC 3.0

One of the people most responsible for implementing the provisions of affordable health insurance reform is the administrator for the Center of Medicare and Medicaid Services. President Barack Obama nominated Dr. Donald Berwick for the role several weeks ago.

However, the Obama administration has had trouble getting Berwick approved by the Senate. Many senators fear that some statements Berwick has previously made indicate that he favors totally government-run socialized medicine, similar to that in the United Kingdom. As a result, Obama has used the controversial recess appointment to install Berwick.

A recess appointment is done through an executive order when Congress is on break. Despite its risks, effective healthcare reform that results in cheap health insurance rates requires that the post isn’t left open any longer than necessary.

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Germany Struggling With Health Insurance Costs, Too

Wednesday, July 7th, 2010

Image: Aenneken under CC 3.0

While the Germans are dominating the World Cup, the situation regarding their health insurance doesn’t look so bright. Just like the United States, their economy has been dealt several blows, and the nation is dealing with a major budget deficit.

Some believe that more direct government intervention will lower the cost of affordable health plans in the U.S., but Germany is proving that point wrong. Chancellor Angela Merkel (the German equivalent of our president) recently agreed to increase premiums for virtually all residents, from 14.9% to 15.5% of their gross pay–split between employers and employees. Insurers will also be allowed to ask for an extra premium to cover additional costs.

On the positive side, nearly 90% of the population is covered through their mandate. Unfortunately, they have failed to control severe jump in health care expenses.

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Facts About Health Insurance Rescission

Tuesday, July 6th, 2010

Image: bobster855 under CC 3.0

One of the worst things that can happen to a person affordable health insurance-wise is having their policy rescinded. In many cases, they are kicked off their plan through no fault of their own.

The good news is that reform will both prevent the practice of unfair rescission and make it easier to gain justice.

The facts about the new regulatory climate:

  • Insurance companies now have little legal justification for dropping people: they will only be allowed to do so due to nonpayment or fraud.
  • The definition of fraud is also clarified. It consists of actively lying about any pre-existing medical conditions or diagnoses you may know have. Having a condition you don’t know about (even if it’s in your medical records, but a doctor hasn’t informed you of it) doesn’t count.
  • For consumers, the appeals process is also strengthened. Health insurance companies must give them at least 30 days advanced notice before canceling a policy.
  • The new rules take effect in late September.

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Will Health Insurance Plans Be Required To Cover Contraception?

Monday, July 5th, 2010


Many believe that healthcare reform will result in health insurers providing full coverage of contraception. This is because the law requires plans to cover “essential preventative care services” at no cost to the patient. That means no co-payments or co-insurance percentages!

For several reasons, the idea of full coverage for birth control is controversial. Social conservatives are leery of appearing to endorse premarital sexual activity (although married couples use contraception as well). For their part, many employer-based health insurance plans are dreading yet another mandate that increases their costs. However, that cost is far less than what they will otherwise have to pay in maternity cost.

The Health Resources and Services Administration will make the decision.

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ER Visits To Jump With More Health Coverage

Monday, July 5th, 2010

Image: aaron_anderer under CC 3.0

Most people would assume that an increase in the percentage of those with health coverage would result in fewer people going to the emergency room. After all, they would have primary care doctors and the means to get preventative treatment early. That was actually one of the arguments for health insurance reform.

Unfortunately, it may not turn out that way. ERs are actually likely to become even more crowded! There is a shortage of family physicians that won’t be remedied for years. Medicaid patients–not the uninsured–are the most likely to utilize emergency services.

A preview of what may be coming: emergency room visits increased by 4-7% in Massachusetts after that state passed universal healthcare reform.

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Support For Healthcare Reform Continues to Rise

Friday, July 2nd, 2010

Image: joeltelling under CC 3.0

Although healthcare reform is still extremely controversial, a recent poll showed that Americans’ outlook on the law became more positive in June.

The Kaiser Family Foundation’s polling showed that 48% of respondents were now in favor of the bill, an increase of 7% from the month before. Opposition decreased by three percentage points, to 41%.

Why the change of heart? There are several contributing factors. For one thing, the political heat has somewhat died down–other issues have taken the spotlight. Meanwhile, the Obama administration had launched a public relations campaign, which drew attention to the beneficial affordable health insurance-related provisions taking effect this year.

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