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TOPIC: Healthcare Reform is Hidden within the Stimulus Package - Be Informed!

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Posts: 63

Date: Feb 10, 2009

Healthcare Reform is Hidden within the Stimulus Package - Be Informed!	Permalink

Below are listed several healthcare reform items that are "hidden" within the Stimulus Bill. As a health insurance agent, I feel it is very important to inform our visitors about these potential reforms. As Americans, we must all become informed about these potential changes and how they might impact the future of healthcare in our country. Recent news informs us that a new bureaucracy, "The National Coordinator of Health Information Technology, is proposed to be created to "monitor treatments" to make sure your doctor is doing what the federal government "deems appropriate and cost effective". The goal is to reduce costs and "guide" your doctor's decisions.... Click here to read the rest of this Bloomberg article written by Besty McCaughey . The wording with regards to the true purpose of this bureaucracy is very vague and leads me to wonder how this new bureaucracy will enforce it's power over our current Medicare System (which may or may not be the future healthcare system for all of us). Medicare currently pays for services deemed safe and effective, but what will happen once a "cost-effectiveness" standard is added to the determination of what will be covered by Medicare? Is it ethical for the government to determine what kinds of healthcare services are appropriate for us? For example, in Canada some people are denied certain kinds of care because they are deemed "too old", or not "worthy" of lifesaving or life enhansing treatment they may need, in the name of cost-saving measures. Will the US stoop to this level to keep healthcare "cost-effective", especially in the wake of baby-boomers reaching the age of Medicare eligibility? In my opinion, this new bureaucracy sets the stage to allow our government the power to "ration" care for the purpose of cost-containment, as our current Medicare and Medicaid systems become overwhelmed with unfunded liabilities. Several other reforms within the Stimulus Bill currently being considered include: House Bill: Extends COBRA coverage for older and tenured workers beyond the 18 months provided under current law. Specifically, workers 55 and older, and workers who have worked for an employer for 10 or more years will be able to retain their COBRA coverage until they become Medicare eligible or secure coverage through a subsequent employer. Senate Bill: Does not extend COBRA eligibility beyond the terms of the current law. Since people who elect COBRA typically anticipate a need for their health benefits, employer plans report that COBRA participants actually cost the employer as much as 150% more than the average plan participant due to adverse selection. We need to help individuals in these worst of times, but we also must limit the financial impact of COBRA participants on extremely hard-pressed employers and employer-sponsored health plans. House Bill: Contains a subsidy administered through the employer for the first 12 months of COBRA coverage for eligible persons who have lost their jobs on or after September 1, 2008 at a 65% rate. Senate Bill: Contains an identically administered subsidy, but for 50% of the premium rate. Just imagine what this required subsidy will do to employer-sponsored healthcare benefits. How many employers will keep offering healthcare benefits if they are forced to pay premiums for terminated employees? House Bill: Only allows the subsidy to be used to purchase COBRA coverage. Senate Bill: Also allows the subsidy to be used for state continuation coverage, allows workers the ability to specially elect a less expensive coverage option if available and allows employers 30 days to begin subsidy administration. The Senate legislation provides unemployed people and employers with much more flexibility. This version of the bill allows unemployed individuals the option of using their subsidy either to purchase COBRA coverage or a state continuation plan if COBRA is not available. The House bill is limited to just COBRA. Since COBRA coverage isn't available to employees of smaller businesses, this is a very important distinction. Also, the Senate bill gives employers enough time to make sure the subsidy will work efficiently. House Bill: Expands Medicaid coverage to individuals (and their dependents) that are receiving unemployment benefits or have exhausted those benefits and have no health insurance coverage. Optional coverage groups would be individuals (and their dependents) who are involuntarily unemployed and uninsured and whose family income does not exceed 200% of poverty, and unemployed uninsured individuals who are receiving food stamps. The Congressional Budget Office estimates that these changes will cause 1.2 million people to drop private health insurance coverage! Senate Bill: Does not expand Medicaid to unemployed individuals. For the record, I am more in favor of the Senate version of the Bill than the House with regards to the items mentioned above. -- Edited by Lynne Erickson at 14:11, 2009-03-10 __________________

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