The new health care reform bill has been passed successfully and is in the process of being implemented. Thanks to the hard work of President Obama, despite attempted opposition the bill finally got through Congress and is on its way to making American lives better! For those of you who are curious about whether this healthcare reform concerns you at all and if so, how you are going to be affected, here are some of the key points of how the bill will be rolled out.

Within the first year:

The biggest and the immediate reform is the introduction of a nationwide high risk pool for insurance coverage supported by $5 billion of federal money. While 34 states already had insurance pools available for high risk customers, this makes the same option available to the remainder of the country beginning 90 days after the passage of the bill. Under this setup, people not covered under any health insurance scheme for the past six months who have been refused for other insurance will have the option of purchasing insurance through the high risk pools. Due to the nature of the pools, insurance in this form is more expensive than standard insurance for the same coverage, but this is mitigated somewhat by the backing from federal money.

The reform also abolishes annual limits and lifetime limits set by health insurance companies. This should cure a lot of worry for people who are at risk of contracting diseases like cancer that are very expensive to treat.

Children under the age of 27 will be covered by the health insurance coverage plan of their parents. While this officially takes effect at the beginning of the first plan year following September, so you shouldn’t cancel separate coverage from your child’s school or private insurance just yet, some insurance companies have pledged to begin making this available immediately.

Next year:

Those on Medicare who fall into the coverage gap (often called the ‘Medicare doughnut hole’) will get rebates to help them meet their expenses. Medicare will also begin making wellness checks and illness prevention plans available to the people it covers with no out-of-pocket fees. This should be a great boon to older people who have to meet their expenses on fixed incomes.

In 2014:

In the year 2014, everyone will be required to have health insurance or they’ll be hit with additional taxes. The tax penalty is based on income, and will begin at 1% the first year and rise after that, with a maximum cap of $750. Families not covered by any health insurance scheme might have to pay up to $2500 as IRS penalty. However, for those who choose to buy insurance, subsidies will be available to help ensure that it remains affordable to as much of the population as possible.

Companies with more than 50 employees should provide health insurance coverage for their employees, failing which they will be fined $2500 per employee and this fine is exempt for the first 30 employees.

Insurance companies can no longer deny insurance coverage to people just because they have pre-existing medical conditions. This will allow the people using the state high risk pools to move into regular insurance pools. As a result, the high risk pools will either be closed down or will be made into part of the regular insurance exchanges that the states will run. Annual limits for benefits will also go out of existence.

Insurance companies with a net premium of over $25 million as income per year will be levied an annual health insurance provider fee.

In 2018:

The health care reform also imposes an excise tax on high cost plans provided by employers. For costs more than $27,500 per family and $10,200 per person will fall under this category. Retirees and people who work in high risk environments would be affected even more, as the tax could be as high as $30,000 for families and $11,800 dollars for individuals.

While the health care reform bill is too large to cover in one reading, these are some of the important aspects of which you should be aware so that you can make the best decisions for yourself and your loved ones.

With the entire buzz surrounding health care reform bill, you may be wondering how the legislation, signed into law in March 2010, will affect you, and when. You have most likely heard many opinions and perhaps are not sure what your personal point of view and standpoint should be, when you do not even know the details or timeline of this new law. The following will provide a guideline describing when certain provisions of the health care law will become effective.

The country will see many of the law’s effects throughout the first year of implementation. Specific businesses will feel the impact. Small businesses will receive a tax credit in order to help pay for employees’ health care, while tanning salons will experience a 10 percent tax hike for their services. Companies who provide health coverage for those who retire young will be helped. Insurance companies’ freedoms will be limited. Any new plans will have to establish an appeals procedure for claims and establish prevention coverage. Health insurance companies will be prohibited from terminating policies when someone becomes ill and cannot establish any yearly or lifetime benefit thresholds. This new plan will also affect the individual, as people may stay on their parents’ health care plan until age 26 and seniors will be given $250 towards prescriptions not covered by Medicare.

Most of the change you will see in 2011 will be those involving Medicare. For those who are members of Medicare’s Prescription Drug Plan, a discount of 50% will be applied to prescription drugs. Medicare will also begin giving personal wellness visits once a year. Help for the disabled can now be given through the community under Medicare. Individuals who make over $200,000 will see an increase in their personal taxes.

By 2013, more changes will be implemented. A person earning over $200,000 will experience a tax increase for the hospital insurance tax. An excise tax will be placed on the sale of medical devices. There will no longer be a tax deduction for employers who contribute to Medicare Part-D retired employees. All insurance plans must use the same electronic systems to provide information to reduce paper and office costs.

2014 will be an important year for the health care reform, as all U.S. citizens must be covered by a health plan. Those who are uninsured will be required to pay a penalty, which will increase each year until 2016. The maximum penalty paid will be $2,250 per family. Companies who employ over 50 people face a similar requirement. These companies must provide health insurance coverage for their employees or pay a fine for each employee. Insurance companies will be restricted from denying coverage to those who already have a health condition. They are also prohibited from making those with a condition pay higher rates. Forums will be established to help people and small companies shop for health plans and have the ability to compare the plans. The eligibility requirements to enroll in Medicaid will broaden to cover more people who are unable to afford private health insurance. Insurance companies will be required to pay a fee when their premiums result in over $25 million being paid per year.

Finally, in 2018, an excise tax will be placed on high-priced health policies given by employers, reaching over $30,950 for families and over $11,850 for an individual.

Regardless of your personal feelings about the forthcoming health care law, its advantages and disadvantages, you will most likely be affected by it, whether personally, or in your business. The impact will be felt by individuals and the country as a whole over the coming years.