How the health care bill will affect consumers
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The uninsured are clearly the biggest beneficiaries of the historic legislation, which would extend the health care safety net for the lowest-income Americans. The legislation is also meant to provide coverage for as many as 32 million people who have been shut out of the market -- whether because insurers deem them too sick or because they cannot afford ever-rising insurance premiums.
For people already covered by a large employer -- most Americans, in other words -- the effect will not be as significant. And yet, just about everyone might benefit from tighter insurance regulations.
"We think it's a big step forward," said Bill Vaughan, a policy analyst at Consumers Union. "It's going to provide a peace of mind that many Americans who really want or need health insurance will always be able to get a quality product at a reasonable price regardless of their health or financial situation."
There will be costs to consumers, too. Affluent families will be required to pay additional taxes. Most Americans would be required to have health insurance and face federal penalties if they do not buy it. And it is still unclear what effect, if any, the legislation would have on rising out-of-pocket medical costs and premiums.
But there is no question that the legislation should benefit consumers in various ways. Beginning in 2014, for example, many employers -- those with 50 or more workers -- could face federal fines for not providing insurance coverage. Several of the other changes would take effect much sooner.
Six months after the legislation is enacted, many plans would be prohibited from placing lifetime limits on medical coverage, and they could not retroactively cancel policies on people who fall ill. Children with pre-existing conditions could not be denied coverage.
And dependent children up to age 26 would be eligible for coverage under their parents' plans -- instead of the current state-by-state rules that often cut off coverage for children at 18 or 19.
And within three months of the law's taking effect, people who have been locked out of the insurance market because of a pre-existing condition would be eligible for subsidized coverage through a new high-risk insurance program.
That special coverage will continue until the legislation's engine kicks into a higher gear in 2014, when coverage would be extended to a wider portion of the population through Medicaid and new state-run insurance exchanges.
First Published March 22, 2010 12:22 am
