The New Health Insurance Bill – How It Affects Your Generation

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By Garrett Ball

In March of 2010, the health insurance reform legislation was signed into law by President Obama. While many people from all age groups may tend to have a “that doesn’t affect me” attitude, the reality is that the bill certainly does affect everyone to an extent, not the least of which is those in the 25 and under age category.

Here is a rundown on some of the significant ways that the bill affect this younger generation:

Ability to Stay on Parents Insurance Until Age 26

  • If you have kept up with the discussion on the bill at all, you have, no doubt, heard this stipulation from the legislation. This allows children to stay on their parents employer insurance until they turn 26. This added time is intended to alleviate some of the challenges this generation faces in acquiring a job (and subsequent employer coverage of their own) in the down economy.
  • This does not apply to you if you are employed and your employer offers health insurance
  • This change has already taken effect, and is one of the first implemented changes as a result of the legislation

Additional Changes in the Way Employer Insurance Operates

  • As many people in this age group are searching for and obtaining their first job, it is important to understand how your employer health insurance benefits will be affected by this bill.
  • First, any plans that include coverage of children are no longer allowed to deny coverage for pre-existing conditions.
  • Also, plans cannot set lifetime benefit maximums or cancel the coverage of those who get sick.
  • Lastly, you will have the option, starting in 2014, to purchase insurance through the “exchanges” (new state-run insurance marketplaces) IF your employer insurance covers less than 60% of costs or if you are paying more than 9.5% of your income to get the employer coverage.

Changes That Impact Those That Are Uninsured

  • The numbers show that many in the under-25 generation are uninsured. This is one of the leading generations when it comes to proportions being uninsured. While it stands to reason that this generation, because it is younger, should be healthier, there are some provisions of the bill aimed at reducing this number of uninsured individuals.
  • First of all, if you are uninsured because you were denied coverage by an insurer, you can get insurance through a high-risk pool. This pool will last until 2014 when insurers can no longer deny individuals coverage. In the pool, individual out of pocket expenses are capped at $5,950 annually.
  • Second of all, if you are uninsured, you can get coverage from the exchanges starting in 2014. In the exchanges, health insurance will cover a minimum of 60% of medical costs, with the option to purchase plans that cover 90% of the costs. Also, in the exchanges , there will be limits on companies profit and overhead, as well as subsidies for lower income levels.

Author Information

Garrett Ball, owner of Secure Medicare Solutions and Medicare-Supplement-Comparison.com, specializes in Medicare and Medicare Supplemental insurance but also handles health insurance for all ages. On these websites, you can request a Medicare supplement quote or uncover answers to your questions about Medicare and Medicare supplement plans. You can also view information about how health care reform affects Medicare

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