Some Dates of Effective Timing of Health Reform Act
The Health “Reform” Act is a take-over of 15% of our economy. It can’t be done overnight. It phases in over the next 4 years, with most of the “budget buster” provisions in latter years. That’s to make the numbers “work”, as if an extra $1 trillion in our budget “works”. But here are some dates for parts of the Act to kick in.
In 2010
1. The $250 Medicare Part D Donut Hole Rebate is paid to some, which is to help them to cover some of the $4,000+ “hole” in coverage.
2. No more lifetime coverage restrictions, where only a certain amount will be paid by the insurance company over a lifetime for claims.
3. A national High Risk Pool is to be set up to cover those who could not otherwise get coverage.
4. You can cover your kid up to age 26.
5. Tax credits available to businesses with fewer than 25 employees that will pay for their health insurance.
In 2011
1. The “CLASS Act” is to begin taking in Long Term Care premiums. Maybe.
2. A surcharge will kick in for Medicare Part B, costing us more.
3. Medicare will pay for some preventive care services.
4. A 50% discount starts for some drugs under Part B coverage.
5. Health Savings Accounts and Advantage to lose key benefits.
In 2013
1. Part D Donut Hole begins to close.
2. Tax increase in the form of increasing from 7.5% to 10% of AGI, the limit over which we can deduct unreimbursed medical expense.
3. Higher income taxpayers pay 2.35% (up from 1.45%) Medicare tax and a 3.8% Medicare tax on unearned income.
In 2014
1. Coverage required for everyone, or face a fine (Hello, IRS)
2. Insurers must accept ALL applicants, dispite disability, illness & medical history.Will this put insurers out of the business?
3. A 15-member Independent Payment Advisory Board starts recommending ways to reduce Medicare spending. Rationing?
4. Goodbye Medicare Advantage Plans, as the law demands that companies must use 85% of premiums to pay claims. This is a not-so-subtle form of price controls, which only succeed in putting businesses out of business.
As Bette Davis once said, “Put on your seat belt, boys, it’s going to be a rough ride.”
Blog Courtesey of:
Tom Willoughby, JD
The Retirement Rescuer
tmw@retirementrescuer.com
407.977.9171
Oakmonte Village is a new 25-acre luxury senior living community in the heart of prestigious Lake Mary, Florida. Ideally located for ease and convenience, Oakmonte Village is within easy reach of many local Orlando amenities such as parks, walking trails, lakes, and more.
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Orlando Senior Living | Oakmonte Village July 13, 2010
