New health care law provisions take effect Thursday
September 22, 2010
Six months after President Barack Obama signed the Patient Protection and Affordable Care Act into law, the first wave of provisions will begin to take effect Thursday.
Some portions of the law have already been implemented, like expanded federal funding to states to cover more people on Medicaid.
A so-called “donut hole” resulting from a 2003 Medicare reform is beginning to be filled with rebates sent to seniors throughout the year. The White House aims to have the hole completely filled by the year 2020.
The ACA also puts an emphasis in funding for preventive care during the next few years.
The provisions to take effect on Thursday include:
- Young adults can stay on their parents’ plans up to age 26 whether they are attending school or not.
- Health insurance comapanies cannot put a lifetime cap on coverage.
- Children will no longer be denied coverage based on pre-existing conditions.
- Health insurance providers can no longer cancel coverage when a policy-holder gets sick.
- Plans will now include coverage for certain preventative care.
- Insurance companies cannot drop coverage due to a mistake made in a person’s application.
- The law provides a way for consumers to appeal an insurance company’s decision to an external review process.
Much of the law will take longer to implement.
Increased reimbursments to doctors for Medicaid treatment will happen in 2013.
The health insurance exchanges will start Jan. 1, 2014. At the same time will it become mandatory for those who can afford it to purchase health insurance.
The last provision to take effect will be to pay doctors based on value rather than volume in 2015.
The Census Bureau reports the number of uninsured soared 10 percent in 2009 and now stands at 50.67 million Americans without coverage. But some of them will have to wait if they are looking for relief Thursday, due to some insurance plans operating on a calendar year, and thus the policy-holders would have to wait until Jan. 1, 2011.