Health Insurance Articles
The Affordable Care Act And Laws That Take Effect In 2011
2011-07-31
The Affordable Care Act offered Americans many new consumer protections in 2010. The new laws and improvements in health insurance included making price comparison easier for the consumer, prohibiting insurance companies from rescinding coverage, and consumer ability to appeal insurance claims. These are just a few of the many improvements in health care resulting from the Affordable Care Act in 2010. Just like last year, 2011 comes with rewarding new laws and consumer-minded reform in health insurance and care.
This year's improvements include better prescription discounts, improved senior after-hospital care and free preventative care for seniors on Medicaid. Many changes due in the 2011 Affordable Care Act have already gone into effect. Some intended improvements to health insurance are due later in the year when funding becomes available.
The Affordable Care Act brought new laws in 2011 that forced accountability of health insurance providers. These laws require that 80 to 85 percent of premium dollars are spent on health care services. This law is meant to make a fair exchange for the consumer and went into effect January 1, 2011.
The 5 percent difference in the percentage is large employer health insurance plans versus small employers. Large plans require 85 percent of premiums to be applied to care, and small plans and individual insurance requires 80 percent. If insurance companies fail to meet these requirements, they must provide rebates to the insured.
New 2011 efforts in the Affordable Care Act include addressing overpayments with large insurance companies. The law is meant to lower the cost difference between coverage and care, therefore bringing down premiums.
Those enrolled in Medicare Advantage insurance companies are far outnumbered by the 77 percent who are not. However, despite being the minority, the Medicare Advantage program has driven the price of premiums. With an average of $1,000 more per person, Medicare's expenses for the pricier program are covered by the system overall, meaning those who aren't enrolled in Medicare Advantage still see their premiums go up as a result. The new laws focus on keeping the coverage and care the same while lowering the price. A part of this effort includes bonuses to Medicare Advantage plans for high-quality care.
The many changes in 2010 and the new changes of 2011 are meant to reform the system overall. There is little doubt that leveling the playing field for the consumer will lead to better pricing as well as care. Lower prices will lead to higher enrollment, and designated premium portions force improvements in care. The American people will simply take better care of themselves with better health insurance. The Affordable Care Act is a series of helpful steps to becoming a healthier nation.
