There has been a lot of coverage lately about the new proposed health care plan. Many are split between the reform and some people just don’t understand. Do not be discouraged. If you are confused, it’s not your fault. There is a lot of clutter, misinformation and lies about the topic.
It is not as difficult to understand as one might assume. The coverage you are to expect in the future is basically determined by what coverage you have today. Here are the central points of the reform:
1.) Keep the coverage you have, but you will gain a lot more protection against dishonest practices of the private health insurance industry.
2.) Offer people who do not currently have an insurance plan the choice of either private health plans or a new plan which would be public, such as Medicare.
The new proposed reform would also allow individuals under the age of 27 to remain on their parent’s family health insurance policy–that is if they have one. If you are currently under the coverage of Medi-Cal or Medicare, the only thing that will change is that your Medicare drug coverage will improve and HMOs will no longer be able to take advantage of the elderly by charging them enormous amounts.
For those who are working for a big employer that wants to keep the same coverage they offer you now, not much will change except that you will get additional protection from the insurance agencies that sometimes try to take advantage of you (things like having a cap on the amounts of insurance company pays for your care in a year or lifetime).
There will also be something called an Insurance Exchange. This is where the government will be regulating health plan choices. Those who will have to go into the Insurance Exchange will most likely be those who are uninsured, work for a small employer or work for a large employer who decides not to offer insurance anymore. Insurers will no longer be able to turn anyone down for coverage for any reason, will not be able to put restrictions or exclusions on pre-existing conditions, will be limited to the amount you will have to pay out of pocket, will not be allowed to put a cap on how much they cover in a year or lifetime, and will not be able to drop your coverage. Also, if your income is lower than 300 to 400 percent of the poverty level, the government will reimburse you for the cost of premiums for the insurance you choose under the Exchange. Also, if you are currently being covered under government programs such as CHAMPUS, VA, the Indian Health Service, etc., you will still receive the same benefits.
Under the Insurance Exchange, people will have to choose from two types of coverage:
1.) Choose to join in one of the many private health plans offered
2.) Choose to join in the new public plan, such as Medicare
What this will do is create competition between the new public plan and the different private plans in the Exchange. This will in turn provide an incentive to reduce costs and improve the quality of care and patient satisfaction. There are many factors which will help Medicare (which is a government financed, single payer, public program) become efficient at providing medical care such as lower administrative costs (no marketing, profits, etc.). Cost in the private health plans are expected to decrease as competition with the public plan will increase. This is mainly due to the leveling of the rules and regulations under which insurance can be sold.
Many people see the new reform to be a government takeover of our health care system; however, no one will be forced into enrolling in any specific type of health insurance. People will still get their health care from private doctors and hospitals. The main reason for the reform is to give people more choices, increase competition to drive down cost, and to stop some insurance companies from taking advantage of people through dishonest practices. Anyone who wants to be enrolled in a single payer system, they are able to do so by selecting the public plan option. For those who want to be insured in the private sector, they can choose a private health plan. What more could anyone ask for? Now that you have an idea of how it would work, do you agree or disagree with the new plan? Comment on this article below to express your ideas.
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