By Cat Gautieri

Have you wondered what all the talk means about health care reform and how it  will impact your family or business? Perhaps you’ve heard President Obama speak of a government-run Exchange Program for low-cost insurance that is to start in 2014. Keep in mind, we have a presidential election coming in 2012 and  theoretically the laws could change again. Here’s a brief summary of what’s in place now:

• Dependent coverage on parents’ plans is available for adult children up to age 26.
• Lifetime coverage limits are eliminated; members can’t be cancelled due to terminal illness expenses exceeding million dollar limits.
• Insurance companies cover in-network preventive care services at 100%.
• No prior authorization for emergency services or higher cost-sharing for out-of-network emergency services is necessary.
• No pre-existing condition exclusions for children aged 19 and under; rates will reflect the condition.
• The appeal process has been revised.
• A temporary high-risk pool insurance plan from the federal government is available for individuals under 65 with pre-existing conditions. A similar state plan is already in place.
• No pre-tax reimbursements from FSA, HRA, or HSA accounts for non-prescribed, over-the-counter medications are allowed.
• For nonqualified HSA withdrawals, a 20% tax is applied.
• Additional W-2 reporting is required; employers must start reporting the value  of the employer-sponsored coverage on their employees’ W-2s. Employees aren’t taxed on this amount.

At this time, there are still unanswered questions on what benefits an Exchange  plan will provide and what the cost will be for individuals, families and employer groups. It’s also unclear what role the federal and state governments will have in the administration and management of this care. Before Americans can receive more benefits as stated in the Health Care Reform Bill, we may see adjustments to the law based on the political climate. Stay tuned…

Cat Gautieri is an independent life, health and certified long-term care insurance broker representing you, the client, by researching all the insurance carriers for the best fit.  Insurance is like a parachute; you have to have it before you need it!   For more information, go to www.mybenefits2.net.