The Affordable Care Act of 2010 reformed health insurance for Americans.
According to The New York Times, health care in 2009 reached $2.5 trillion, a number that represents more than 17 percent of the U.S. economy. Because the health care industry makes up such a large portion of the economy, it is no wonder that the government regulates it, perhaps implementing the most rules for the health insurance companies themselves.
Employers and Group Plans
Under the Health Insurance Portability and Accountability Act, or HIPAA, an employer and the insurance company he uses to offer employee health coverage cannot discriminate against employees with pre-existing health conditions. Employees with health conditions that were not treated, examined or diagnosed by a doctor in the six months preceding the employee's application for insurance must receive insurance acceptance, as well as full coverage for the pre-existing condition. If the employee did seek medical attention for the pre-existing condition in the preceding six months, the health insurance company must still provide the employee with coverage, but can exclude benefits for the pre-existing condition for a period of up to 18 months.
Health Insurance Companies
The passage of The Affordable Care Act in 2010 implemented a series of rules and changes directly affecting American health insurance providers. As of September 2010, health insurance providers cannot issue coverage to children with pre-existing conditions. Additionally, parents of adult children under age 26 can add their children to their health insurance policies, regardless of the adult child's financial dependence or independence, marital status and whether or not the adult child is a student enrolled in college. Furthermore, all health insurance plans must include coverage for preventive care, such as routine vaccinations and check-ups, at no cost to the policy-holder. For older insured individuals, this could mean free mammograms and colon cancer screenings.
Privacy
The HIPAA laws include a privacy act enforced by The Office for Civil Rights under the U.S. Department of Health and Human Services. The law requires that health insurance companies and health care providers protect the health information privacy of policy-holders and patients. Health insurance companies and caregivers cannot share information concerning the past, present or future mental and physical health of any individual. Failing to comply with HIPAA privacy rules can result in legal investigation and criminal prosecution from the U.S. Department of Justice.
Future Changes
By 2014, no health plan can impose annual limits or lifetime caps on coverage. The same year, insurance providers must grant health coverage to all Americans, regardless of pre-existing conditions. Additional provisions make it mandatory that all Americans carry health insurance or else pay an annual penalty. However, low and middle-income households making between 100 and 400 percent of the federal poverty level can claim a federal tax credit to help them afford the cost of private health insurance premiums.
Tags: health insurance, health care, health insurance, insurance companies, insurance providers
