Health-Care Reform
Is the landmark new plan a good idea?
By Marcia Clemmitt

The health-care reform legislation signed into law by President Obama on March 23 marked the biggest attempt to expand access to health care since Medicare and Medicaid were launched in the 1960s. The massive legislation will help 32 million Americans get health insurance coverage and bans insurers from denying coverage to those with preexisting illnesses. It also expands Medicaid to all poor people. . . .

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• Is the new health-care reform law a good idea?
• Will people with insurance lose out under the new law?
• Will health care reform make care more affordable?

Will the health-care reform law harm the federal budget?

Grace-Marie Turner President, Galen Institute. Written for CQ Researcher, May 2010	Paul N. Van de Water Senior Fellow, Center on Budget and Policy Priorities. Written for CQ Researcher, May 2010

Health Reforms That Begin This Year

Most Americans won't see many effects of the health-care reform law this year. However, the law does launch a few programs that start expanding coverage for some of the neediest people and some who are easier to cover.

High-risk pool — Many people with preexisting medical conditions can't get affordable insurance under current laws. To help close that gap, this year a temporary “high-risk pool” will begin offering price-capped coverage to people with pre-existing illnesses. In 2014 the new law will require insurers to take all comers.

Young adult coverage —Young adults are one of the largest uninsured groups. Beginning this year, for the first time, young adults up to age 26 can get coverage under their parents' health insurance.

Benefit limits — In the past, patients with serious illnesses were likely to lose their insurance coverage when they ran into a lifetime limit on the dollar value of their coverage. Beginning this year, the law bans lifetime dollar limits on coverage and also bans insurers from canceling a patient's insurance policy for any reason except fraud by the patient. Also beginning this year, children may not be refused health insurance because of preexisting medical conditions.

Medicaid expansion — For the first time, states may offer Medicaid coverage to all poor people, not just to mothers and their young children or the disabled.

Business tax credit — Small businesses whose workers' annual wage is under $50,000 get tax credits if they provide health insurance.

Regulating insurance premiums — Insurers must report the proportion of premium dollars they spend on actual medical services, and the federal government will establish a process for judging whether annual premium increases are justified.

— Marcia Clemmitt

[1] See “Focus on Health Reform: Summary of New Health Reform Law,” The Henry J. Kaiser Family Foundation, March 26, 2010, and “Timeline for Health Care Reform Implementation: System and Delivery Reform Provisions,” The Commonwealth Fund, April 1, 2010.

Footnote: 1. See “Focus on Health Reform: Summary of New Health Reform Law,” The Henry J. Kaiser Family Foundation, March 26, 2010, and “Timeline for Health Care Reform Implementation: System and Delivery Reform Provisions,” The Commonwealth Fund, April 1, 2010.