Health Care Reform 2010
President Barack Obama introduced historic reform bills which were passed through Congress and the House of Representatives in March 2010. These health care reform bills ensure the gradual application of changes to the US health care system over the course of the next few years up to 2018. The changes enacted in these bills are designed to protect patients from questionable insurance practices and make health care more affordable. They are a significant move toward fairer, ‘universal’ American health care and were mostly supported by Democrats, while meeting opposition from Republications.
Patient Protection and Affordable Care Act
This Act was signed into law on March 23rd, 2010. The law sets out an ambitious program of reform to be implemented during Obama’s first term, including many new provisions for people on the federal poverty level. Lots of these people can hope to receive subsidence for their insurance premiums, plus an expansion of Medicaid eligibility which will allow greater access to this public program. Protection for patients with pre-existing conditions is extended, included uninsured adults up to 2014 (when new programs come into place).
Another key component of the bill outlaws common insurance practices which often ultimately benefit the insurers but not the patients. Limits on the amount of cover a patient can claim during a lifetime policy are now banned, and annual coverage limits are also significantly restricted. Insurance companies are also prohibited from rescission. This means they are no longer allowed to cease a patient’s coverage when they are suffering from an illness the insurer does not wish to cover.
Health Care and Education Reconciliation Act
This Act was passed on March 25th and signed into law on March 30th, 2010. A large portion of the bill is dedicated to student loan reform, but the rest addresses further health care reform, particularly financial concerns for doctors and patients. The aforementioned bans on rescission and lifetime coverage restrictions are extended by this bill to all existing health insurance plans. It also closes the so-called Medicare ‘donut hole,’ gets rid of certain special deals for senators, guarantees full reimbursement for Medicare doctors, and increases Medicaid payment rates to match. The bill implements a plan to offer discounts on brand-name drugs, and provide variable tax credits to people within 400% of the federal poverty level.
Quality over Quantity
It could be argued that the US health care industry has often been profit-orientated, with insurers encouraging physicians to get through as many patients as possible rather than offering suitable care. These reform bills aim to redress the balance by introducing better financial incentives for doctors on public programs, in addition to a Medicare policy that will reward quality of care as opposed to the amount of patients seen.
Financing the Reform
The Congressional Budget Office has estimated that, as a result of the health care reform, the federal deficit will in fact be reduced by approximately $143 billion in the first ten years. This is due to new provisions of fees, taxes and cost-cutting measures that will finance the reform. A tax penalty will be introduced for citizens who do not seek health insurance, unless they fall into an exemption category, while people with higher incomes on the Medicare program will be required to pay higher taxes.