Consumer Health Coalition

Consumer Health

March 23, 2010

Consumers, Colleagues, and Friends,

With the passage of healthcare reform, Sunday was a truly historic day which marked a new beginning for millions of Americans. The new legislation addresses access, quality, and affordability, all of which are of paramount importance to Consumer Health Coalition. We are truly pleased with the bill and believe that it is a big first step toward accomplishing our goal of quality, affordable healthcare for the most vulnerable.

Among other things, the bill ensures that no one will be denied coverage due to a preexisting condition. In PA, that accounts for 143,600 residents. Insurance companies will no longer be permitted to drop coverage when we get sick, nor will they be allowed to place lifetime coverage limits on insurance. Women will no longer be discriminated against because of their gender; and children will be permitted to remain on their parent’s insurance until age 26. There will be tax credits available for families up to 400% of the Federal Poverty Level, and an expansion of Medicaid eligibility to persons with incomes under 133% of the Federal Poverty Level. This amounts to 3 million families in PA. In addition, 62,800 small businesses in PA will be eligible for tax credits to help pay the cost of health care for their employees.

The bill uses a phased in approach to implement the various reforms. This is done over a four year period. Immediately, in 2010 Americans can expect the following changes:

  • There will be new coverage options for high risk consumers
  • Each state will be required to develop a website to help consumers identify coverage options
  • Uniform policy documents will be established to make shopping for coverage easier
  • Insurance companies will be precluded from dropping your coverage
  • Young children will no longer be denied care for pre-existing medical conditions;
  • Dependent coverage will be extended to age 26
  • Lifetime and unreasonable annual benefit limits will be eliminated
  • Insurance company profits and overhead expenses will be capped
  • There will be a temporary reinsurance program for early retirees
  • A $250 rebate to Medicare beneficiaries who hit the donut hole

Additional benefits take effect over the next four years until all provisions are fully implemented in 2014. By 2014, Americans will no longer have deductibles or co-pays for preventive care in all new health plans. Individuals will no longer pay higher premiums based on pre-existing conditions, gender, or occupation. Moreover, annual caps on out of pocket expenses and deductibles will be implemented. For example, deductibles that are greater than $2,000 for individuals and $4,000 for families in small business health insurance plans will be prohibited.

Beyond the many benefits to families and individuals, the bill invests in the health care industry and seeks to improve health disparities. Not only does it provide funding for the primary care workforce, it offers bonuses to providers practicing in areas where the numbers of physicians are limited. What’s more, it looks to increase the diversity of health professionals and improve cultural competence. It also provides funding for data collection and research that helps to identify and eliminate health disparities.

There is no question that the bill that passed late last night is the largest piece of social legislation in decades. As an organization that is focused on accessibility, quality and affordability of health care this is a remarkable day for us; however our work is not done. CHC is looking forward to beginning advocacy at the state level to ensure that Pennsylvania takes full advantage of the bill, and considers consumers every step of the way.

Thank you to all of you that stood by us and with us throughout this fight. We could not have done this without you.

Beth Heeb
Executive Director
Consumer Health Coalition