One Month Later: Making Health Insurance Reform a Reality

Just over a month ago, President Obama signed the Affordable Care Act into law. This landmark legislation gives the American people the control over their own health insurance they need and deserve — by holding insurance companies accountable, bringing down costs and giving all Americans more insurance choices.

The day of that signing the President made one thing clear – he expects his Administration to deliver the benefits of reform to the American people as effectively and expeditiously as possible.  As the President said, “we need to get this right.”   Over the last month, we’ve begun doing that.  We’ve made significant progress in implementing the new law and making reform a reality for millions of Americans.  

Here’s what we’ve done:

We’ve Held Insurance Companies Accountable
Effective September 23, the Affordable Care Act prohibits some of the worst insurance company practices, including the practice of rescinding coverage from policyholders when they become sick and need it most.  After media accounts indicated that an insurance company actively worked to rescind health care coverage for women diagnosed with breast cancer, the Administration called on this company to end this practice and immediately comply with the new law. Two days ago, the insurance industry announced they will immediately follow the new rules and not wait for the new law to make it illegal. We’re glad to hear that the insurance companies are now doing the right thing -– and we intend to hold them to their word.

We’ve Helped Small Businesses Lower Costs
Across the country, small businesses are struggling to provide their employees with affordable, quality health benefits. Rising costs have forced many small businesses to charge their employees more for care, or eliminate benefits altogether.

The Affordable Care Act provides tax credits to small employers that purchase health insurance for employees. An estimated 4 million small businesses nationwide could qualify for the tax credit, which will provide a total $40 billion in relief for small firms over the next 10 years. Small businesses can take advantage of the tax credit immediately and the Internal Revenue Service has begun delivering postcards to more than four million small businesses and tax-exempt organizations to make them aware of the tax credit. Learn more about the tax credits here.

We’ve Expanded Coverage for Young Adults
In the past, college graduations were a time to celebrate and a time to worry. For many young adults, graduating from college meant losing health insurance coverage.

This year, the Affordable Care Act will allow many young adults to stay on their parents’ health care plan until age 26. This provision takes effect on September 23, 2010. Under the new law, some young adults graduating from college this spring could risk losing their health insurance before the provision takes effect, only to be added back onto their parents’ policy the next time their parents’ plan comes up for renewal on or after September 23rd.  On April 19, Secretary Sebelius called on insurance companies to begin covering young adults voluntarily before the September 23 implementation date. 65 insurance plans, including some of the largest carriers in the country have agreed to do so. This will help ensure many Americans graduating from college this spring can stay on their parents’ health insurance plan.

On April 27, the Internal Revenue Service released new guidance specifically stating that children can be covered tax-free on their parents’ health insurance policy. This new guidance provides important information to businesses and includes information on incentives the Affordable Care Act provides for employers to immediately extend health insurance coverage to young adults.

We’ve Provided Relief for Americans with Pre-Existing Conditions
Before reform, parents across America worried how they would provide coverage to their children if they had a pre-existing condition