New health care law: What happens when
April 14, 2010Jon Brooks Comments OffClick on this chart from Visual Economics to see when various health care provisions go into effect over the next nine years.
From the site, the info in non-visual form:
2010
In 2010, there will be three major changes to health care:
1. Insurance companies will no longer be allowed to deny coverage to children with pre-existing illnesses.
2. Children would be able to stay on their parents’ insurance policies until they turn 26 years old.
3. Medicare recipients who fall into a specific coverage gap will get a $250 rebate.
Other changes in 2010 include:
* Excise tax on indoor tanning, which will increase the cost of the service.
* Individuals that have not had health insurance for six months will receive a subsidy to enroll in high-risk insurance pools. All new insurance plans sold must exempt preventative care and screenings from deductibles.
* Small businesses with fewer than 25 employees will receive up to a 35 percent tax credit for providing health insurance to their employees.2011
In 2011, the new health care bill will make changes focused mostly on preparing for later updates. The senior citizens that fall into the “Medicare doughnut hole,” a coverage gap, will get a 50 percent discount on some drugs.
In 2011, a new fee on drug makers will also be implemented to help pay for the upcoming changes. The fine on withdrawing funds from a Health Savings Account for non-medical expenses will increase by 5 to 10 percent. Employers will also need to start including the cost of health care on employee’s W-2 forms.
2012-2013
No major changes will occur in health care in the year 2012 under the new health care bill.
In 2013, many of the new taxes and fees that will pay for the new health care bill will go into effect. These taxes will include new Medicare taxes on individuals who earn more than $200,000 a year. The wage tax, dividends and interest tax, and a small tax on medical devices will also be implemented.
In 2013, the new health care bill will also implement a test system in Medicare in which payments are made based on the quality, rather than quantity of health care services. Health insurers will also be barred from charging different premiums to customers based on gender.
2014
In 2014, the majority of Americans will gain benefits from the new health care bill.
Exchanges will be created so individuals without employer- provided health care or small business can shop for health care coverage- and insurance companies will be barred from denying coverage on the basis of pre-existing conditions.
Medicare will also expand to cover all Americans with income up to 133 percent of the federal poverty level (about $27,000 per year for a family of 4).
Small businesses will also receive a tax credit to help them provide coverage to their employees. The insurance industry will also be required to pay an annual fee to help pay for the exchanges that will cover all citizens that cannot otherwise receive insurance.
In addition to providing subsidies and guaranteeing coverage for most citizens, the new health care bill will also require that most people have health insurance. There will be a fine for not carrying health insurance of some kind. An independent Medicare board will also be created to help curb Medicare costs if the costs rise more quickly than inflation.
2015-2018
In 2015, the new health care bill will simply continue the new coverage, taxes and fees that were created during the previous years.
In 2016, the penalty for individuals who do not purchase health insurance will rise to a $695 minimum.
In 2017, businesses that have more than 100 employees will be allowed to participate in state insurance exchanges if the state government allows it.
In 2018, an excise tax will be imposed on so-called “Cadillac plans” that generally provide more than $27,000.
