30th March 2010 was the day when headlines read everywhere about President Obama signing into law a bill that sought to reform provisions in the health insurance industry. With the new health care reform, college students will not just be required to have health insurance but will also have the permission to extend their stay on their parents' plans for a certain period of time.
The reform suggests that American citizens may have to cough up $695 as fine for not having health insurance starting in the year 2014. According to President Obama, the reason behind making this overhaul a law was to make sure that everybody has some basic security when it comes to health care.
What are the featured proposals in the new health care reform?
- Extension: With effect from the present year, children will be allowed to stay on thir parent's health policy till the age of 26 years.
- Pre-existing condition: If you have a pre-existing health condition, you would be eligible for a new “high-risk” insurance program that is funded by the government.
- Tax credits: Up to 35% of the cost of premiums would be considered for tax credits in case of small businesses.
- Policy caps: There will be a bar on setting caps or cancellation by insurance companies when a patient gets sick.
- No-refusal: Health-plans will no longer be able to refuse an individual with a pre-existing medical condition.
- Mandatory insurance: Under the new plan every individual is required to have health insurance. If you don't have health insurance, you will be required to pay a penalty of $95 or 1% of income, whichever is greater. This amount would mount to $965 or 2.5% of your income by the year 2016.
- Affordable coverage: For people with income more than 133% but less than 400% of the federal poverty level, there will be premium subsidies.
- Catastrophic health plan. At the age of 20 individuals will be offered the option to buy a low cost catastrophic health plan.
Blog Category