Learning About the Health Care Reform

I know a lot of citizens have waited long enough for the health care debate to come to its end. Now that it has finally reached that point, people are very anxious to know what measures will be implemented and when exactly will it take effect. So to be able to update my readers, below I will provide an overview of the timeline regarding the health care reform. You might want to take note of it so that you you’ll know what to expect in the health care industry in the following years.
2010
Insurance Reforms:
* Prohibits lifetime benefit limits – based on dollar amounts
* Allows restricted annual limits on the dollar value of certain benefits
* Coverage rescissions/cancellations are prohibited (except for fraud or intentional misrepresentation)
* Cost-sharing obligations for preventive services are prohibited
* Dependent coverage up to age 26 is mandated
* Internal and external appeal processes must be established
* Pre-existing condition exclusions for dependent children (under 19 years of age) are prohibited
* New health plan disclosure and transparency requirements are created
2011
Insurance Reforms:
* Uniform coverage documents and standard definitions are developed
* Minimum medical loss ratios are mandated
2012
* Hospitals, physicians, and payers would be encouraged to band together in “accountable care organizations”
* Hospitals with high rates of preventable readmissions would face reduced Medicare payments
2013
* Individuals making $200,000 a year or couples making $250,000 would have a higher Medicare payroll tax of 2.35% on earned income —up from the current 1.45%. A new tax of 3.8% on unearned income, such as dividends and interest, is also added.
* Medical expense contributions to flexible spending accounts (FSAs) limited to $2,500 a year—indexed for inflation. In addition, the thresholds for claiming itemized tax deduction for medical expenses rise from 7.5% to 10% of income.
* Medical device manufacturers would have a 2.9% sales tax on medical devices; devices such as eyeglasses, contact lenses, and hearing aids would be exempt.
* Eliminates deduction for expenses allocable to Medicare Part D subsidy for employers who maintain prescription drug plans for their Medicare Part D eligible retirees.
2014
Health Insurance Exchange & Insurance Reforms:
* State individual and small group health insurance exchanges operational.
* Guaranteed issue, guaranteed renewability, modified community rating and minimum benefit standards (“essential benefits” plan) effective.
* Lifetime and annual dollar limits are prohibited for essential benefits.
* Pre-existing condition exclusions are prohibited.

Learning About Life Insurance Rate Classifications

If you have finally decided that it’s time to get life insurance, you should know about some basic things that will play part in the whole purchasing process. For instance, it is a must for you to learn about the different rate classifications. This will somewhat determine how much will be the cost of your policy. Below is a list of the common criteria, get familiar with it so that you can at least have an idea as to which classification will you belong.

* Preferred-Plus Term Life Insurance Rate – To qualify for the ‘preferred-plus’ life insurance rate, you must not use tobacco in any form, you should have no history of drug or alcohol abuse, and you cannot engage in any perilous activities. According to actuarial tables, these are the people who will perhaps live the longest, and therefore qualify for the lowest available premiums.
* Preferred Life Insurance Rate – In order to qualify for this rate, you must be in your best health condition and you should not participate in hazardous activities.
* Standard Life Insurance Rate – Individuals who have minor health problems like cholesterol or someone who is moderately overweight can possibly qualify for these rates.
If some things are quite unclear to you, contact an agent and let him explain these to you in detail and remember, never settle for the first offer you receive.