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The Health Care Reform Timeline
Catherine Arnst

 

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On March 23, President Obama signed into law a sweeping reform of the nation's healthcare system. When will the changes that most affect consumers kick in?

2010

-- Medicare recipients receive a $250 rebate when they hit the "doughnut hole" gap in Part D drug coverage.

-- Businesses that employ fewer than 50 people are eligible for a tax credit equal to 35 percent of health insurance premiums.

-- States can choose to establish temporary high-risk pools for people with preexisting conditions, similar to those for car insurance, until new health insurance exchanges are implemented in 2014.

-- A federal website debuting this summer, www.healthcare.gov, is to provide information on health insurance options in each state.

-- Effective September 23, insurers cannot exclude children with preexisting conditions from coverage.

-- Adult children may remain on their parents' policies until their 26th birthday, although many plans will institute this change only when their new policy year starts.

-- All new policies must cover preventive services such as cancer screening, with no out-of-pocket costs.

-- Insurers are barred from canceling coverage when a policyholder becomes ill.

-- Insurers can no longer set lifetime limits on the amount of benefits paid; annual limits are restricted and will be phased out.

2011

-- A voluntary national insurance program will be established to cover home health services for the elderly.

-- Those hitting the "doughnut hole" will receive a 50 percent discount on brand-name drugs.

-- Medicare will offer free annual wellness visits and personalized prevention plans.

-- Small businesses that establish wellness programs will be eligible for grants.

-- Chain restaurants and vending machine companies must disclose the nutritional content of their products.

-- Medicare will pay a 10 percent bonus to primary care physicians practicing in areas with doctor shortages.

2013

-- The Medicare payroll tax rate will rise from 1.45 percent to 2.35 percent on earnings over $200,000 for individuals and $250,000 for couples.

-- The minimum threshold for claiming deductions for medical expenses will increase from 7.5 percent to 10 percent of adjusted gross income for those under 65.

-- Contributions to a flexible spending account will be limited to $2,500 per year.

-- The employer tax deduction for subsidizing Medicare Part D-eligible retirees will be eliminated.

2014

-- U.S. citizens will be required to buy health insurance or pay a penalty of $95 per person in 2014, $325 in 2015, and $695 or up to 2.5 percent of income in 2016. After 2016, penalties will be indexed. The working poor may qualify for subsidies.

-- Companies with 50 or more employees generally must offer health insurance or pay a penalty of $2,000 per employee after the first 30.

-- Insurers will not be allowed to refuse coverage because of preexisting conditions and cannot charge higher rates because of health status, race, or gender.

-- Health insurance exchanges will be available in each state, allowing individuals and small firms to comparison shop for a standardized policy.

-- Employers can offer rewards of 30 percent to 50 percent off the cost of coverage to employees who participate in wellness programs.

2018

-- An excise tax will be imposed on employers who provide their workers costly "Cadillac" health plans, those with premiums beyond $27,500 annually for family coverage and $10,200 for individuals. Companies can choose to pay the tax, pass it on to employees, or lower the benefit.

 

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(c) 2010 U.S. News & World Report

 

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