How Reform Impacts You & Your Family
Immediate Impacts of Healthcare Reform
Take a look at the top 10 immediate impacts of the healthcare reform law.
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Help with Insurance Costs
Through the Patient Protection and Affordable Care Act (PPACA), your family may be eligible for assistance in finding and paying for health insurance.
- Within six months, the law provides eligible individuals access to coverage through "high-risk pools" established by the state or federal governments, with no exclusions for preexisting health conditions.
- In 2014, individuals and small employers will be able to comparison shop for standardized health packages through new state health insurance exchanges.
- Premium tax credits will be available through the exchange in 2014 for certain people with incomes below 400 percent of the federal poverty level.
- Small business tax credits were made available, beginning in 2010.
No Preexisting Condition Exclusions
In 2010, the law barred plans from imposing preexisting condition exclusions on coverage of children under the age of 19.
- By 2014, the law will provide that health plans can no longer exclude coverage based on preexisting health conditions for anyone.
- In 2014, it will also limit the ability of insurance companies to charge higher rates due to heath status, gender, or other factors. Premiums can vary only due to age, geography, family size and tobacco use.
Online "Shopping" for Health Plans
In 2014, individuals and small businesses will be able to comparison shop for standardized health packages through new state health insurance exchanges. These exchanges will facilitate enrollment and administer tax enrollment and administer tax credits so that people of all incomes can obtain affordable coverage.
Dependent Coverage
Plans now provide dependent coverage for children must continue to make that coverage available for dependents up to age 26.
Change to Itemized Tax Deduction
You may see a change if you itemize your deductions on your federal income tax form. In 2013, for those under age 65, the income threshold for claiming the itemized deduction for medical expenses will increase from 7.5 to 10 percent.
No Annual Limits on Coverage
In 2010, the law prohibited all health plans from placing lifetime limits on coverage, and prohibited the use of restrictive annual limits. By 2014, it will prohibit plans from imposing annual limits on the amount of coverage an individual may receive.
First-Dollar Coverage for Preventive Care
Within six months of enactment, plans must provide first-dollar coverage for preventive services. This means your deductible does not apply to these services.
Eventual Guaranteed Issue
By 2014, the law will provide that health plans can no longer deny applications for insurance coverage based on the applicant's preexisting health conditions. It will also limit the ability of insurance companies to charge higher rates due to heath status, gender, or other factors. Premiums will vary only on age, geography, family size and tobacco use.
Minimum Benefit Packages
By 2014, the law will provide that insurance plans must include government-defined "essential benefits" and coverage levels. All non-grandfathered and exchange health plans will be required to meet federally required to meet federally mandated levels of coverage. The federal Office of Personnel Management will provide a choice of coverage through a multistate plan available from nationwide health plans.
This information has been compiled from a variety of sources. Please note that interpretations may vary, and you should consult your attorney and/or tax advisor for more specific information. New and existing state laws may impact many of these provisions as well as future federal and state regulations. Please also note that the new law allows for "grandfathering" of certain health plans, making those plans not necessarily subject to portions of the new law.
