Health Insurance Articles
Aspects Of The Affordable Care Act That Take Effect In 2012
2011-07-16
When President Obama signed the Affordable Care Act in March 2010, a timeline was created that will slowly reform comprehensive health insurance as we know it, with final aspects taking place in 2014. Each year something new is added, including incentives and other ways of reducing costs. Health insurance in 2012 will be affected by several of these new items.
One of the first things to take note of is something that will become effective as of January 1st of 2012. On that date, the government will begin providing incentives for physicians to join forces into groups known as Accountable Care Organizations. This will allow doctors to coordinate patient care, improve the quality of the care given, as well as reduce unnecessary hospital admissions. If care can improve and health care systems costs are reduced, the Organization is able to keep a percentage of the money that it has saved.
There is also a program that will be going into effect as of March 2012. The Affordable Care Act is taking measures toward understanding and fighting disparities in health care. What this breaks down to is that Federal health programs will collect and report racial, language and ethnic data. By getting a better grasp on the disparities, the Secretary of Health and Human Services can begin closing the gap by ending insurance discrimination in preventative care and health care in underserved communities.
Another step of the timeline takes effect in October of 2012. This will provide a long-term care insurance program that is voluntary. The name of the program is going to be referred to as CLASS. Adults who opt for this program who become disabled will receive cash benefits.
The first regulation of reducing administrative costs and paperwork will also be taking effect in October. Billing will become more standardized and health plans must begin implementing electronic records. This will dramatically lower administrative costs as well as reduce medical errors and improve the quality of care overall.
Finally, the year will end with the Affordable Care Act establishing what will be known as a VBP or Value-Based Purchasing Program within hospitals on Original Medicare. This will offer hospitals various financial incentives for improving the quality that is given in terms of care. Documentation will be required and will be publicly reported.
The health insurance in 2012 is going to slowly start shaping the changes that will occur throughout the country in the next few years. When new opportunities for lowering health care costs exist, as well as increasing the numbers of persons who are covered, insurance premiums will be reduced. Lower premiums directly translate to a larger percentage of the population being able to afford health insurance.
