| Myth - Free Health Insurance | | | | best: "Policy holders may experience increases in |
| Early on the Monday morning after the health reform | | | | monthly premiums on their share of the costs when |
| bill passed, we received several calls from people who | | | | they seek medical care due to the richer benefits |
| wanted to sign up for the new free health care. Free | | | | provided by these reforms." |
| health insurance is a myth. The health reform bill does | | | | Spin - Health Insurance Costs Will Come Down Over |
| not provide for free health insurance. It does expand | | | | Time |
| Medicaid eligibility to 133% of the Federal Poverty Level | | | | On January 1, 2011, insurance companies will have to |
| starting in 2014 which will result in more people being | | | | operate at an 80% or 85% loss ratio depending on |
| able to qualify for the state Medicaid programs. | | | | type of insurance. This means that 80 cents or 85 |
| Additional subsidies and tax credits will also be | | | | cents out of every premium dollar has to be spent on |
| available to those who qualify. | | | | "medical care". What expenses are to be included in |
| Spin - You Can Keep Your Current Plan | | | | have not been determined yet. Many insurance |
| You can keep your current plan until September 23, | | | | companies already meet this requirement or are close |
| 2010 (group plans until the first renewal after that date). | | | | so it probably will not lower costs as much as thought. |
| Your plan will then have to incorporate several new | | | | Regardless, in 2014 additional benefits have to be |
| federally mandated benefits. This modified plan can | | | | included in all health plans driving costs up even further. |
| then be kept past 2014 only if there are no other | | | | New taxes in 2014 on insurance companies and some |
| changes in benefits. For example, you would not be | | | | medical providers will be passed on to you in higher |
| able to change your deductible to cut costs. It is | | | | premiums. Your own income taxes may go up due to |
| unclear as to what happens if new state mandated | | | | a loss in the amount of medical deductions you can |
| benefits are added to your plan or the insurance | | | | take. |
| company makes any plan changes. | | | | Part Spin Part Fact - Small Businesses Will Save |
| Spin - Health Insurance Will Be More Affordable | | | | Money |
| The benefits and provisions mentioned above have to | | | | Small businesses will see an across-the-board |
| be added to your policy on September 23, 2010. They | | | | premium increase on or shortly after September 23, |
| include: | | | | 2010 just like everyone else. Small businesses of 25 or |
| No lifetime limits on benefits (currently many plans | | | | fewer employees who meet certain salary |
| have a $1 million or $2 million limit). | | | | requirements will get up to a 35% tax credit when |
| Dependent coverage to age 26 even if married | | | | they file taxes due April 15, 2011. Unfortunately, many |
| (OOPS, a child of a married dependent would not be | | | | small businesses may not be able to keep their group |
| covered at birth. The parent would have to apply for a | | | | insurance or stay in business to take advantage of it. |
| new policy). | | | | We have already had at least six small businesses |
| No denial of coverage for children under 19 | | | | drop their group health insurance this year just to keep |
| (already provided for on in some states and on small | | | | their doors open. |
| group plans of 2-50 employees. Some state high risk | | | | Part Spin Part Fact - Medicare Beneficiaries Will Be |
| pools also provide for this). | | | | Better Off |
| Certain preventive care benefits (yet undefined) | | | | Medicare Advantage plans will not get a cost-of-living |
| must be covered with no copays or cost sharing. | | | | increase this year. On October 1, 2011 you will see |
| All these added benefits will increase costs and | | | | premiums on these plans go up, benefits go down, or |
| everyone will see a premium increase in September or | | | | some combination of both. |
| on group renewal. It could be anywhere from 5-20 | | | | If you spend enough on prescriptions to enter the |
| percent or more. It will vary by state, company and | | | | donut hole, which could cost you up to $3,800, you are |
| plan design depending on what is already covered. An | | | | eligible for up to a $250 refund for this year. About half |
| April 13, 2010 Oregon Insurance Division bulletin says it | | | | of 2011's larger donut hole would be covered. |