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New Health Care Regulations Help Michigan’s Health and Economic Well-Being


Dingell Marks Health Care Milestone

Washington, DC – Tomorrow marks the six-month anniversary of President Obama signing the Affordable Care Act into law. It will also be the first day new consumer protections – The Patient’s Bill of Rights – take effect and end the worst insurance company abuses.  Congressman John D. Dingell (D-MI15), who authored the Patient’s Bill of Rights, which passed the House of Representatives in 1999, and has strongly advocated for these consumer protections, said people will see immediate benefits because of today’s changes.

“These changes benefit both the young and old, the sick and the healthy, rich and poor and everyone across the spectrum of different groups in our nation,” Dingell said.  “We will be healthier, our coverage will be better and people can feel more secure that they will have a doctor when they need it.  We’ve always had the best doctors, nurses and medical care in the world. Now we are a bit closer to making it available to all Americans”
 

What’s New on Thursday

  • As of tomorrow, health insurance companies may no longer:
  • Discriminate against children with pre-existing conditions, to the benefit of over 72,000 uninsured children and 90,000 children with limited coverage;
  • Drop coverage when someone gets sick or because of unintentional application errors, to the benefit of nearly 10,700 people each year
  • Place lifetime limits on coverage, to the benefit of nearly 20,400 people who reach coverage limits and over 102 million enrollees with lifetime policy limits.  Additionally, companies will have to restrict annual dollar limits on policies, with dollar limits completely eliminated in 2014, to the benefit of 3,500 people who will gain coverage and 18 million people who currently have dollar limits.
     

Starting tomorrow, young adults up to age 26 will be allowed to remain on their parents’ insurance plan. Additionally, people who purchase or join a new plan will have the right to chose their own doctor in their insurer network, go to any emergency room for emergency services without any additional out-of-network charges, appeal insurance company decisions through an independent party and receive recommended preventive care with no out-of-pocket costs.

In Michigan

  • Michigan small businesses who may be eligible for health reform tax credits this year: 132,000
  • The benefits in Michigan are becoming more clear all the time. Here’s a look at just some of the numbers.
  • Residents who could fall into the prescription drug coverage gap last year and could be eligible for rebates this year: 134,000
  • Number of Medicare beneficiaries who will receive free preventive services and other benefits: 1,570,000
  • Residents who purchase private insurance and will not have to worry about lifetime limits being placed on coverage: 5,964,000
  • Number of people who purchase private insurance who are protected from rescissions: 5,964,000
  • Number of young adults who could have quality affordable coverage through their parents: 32,800
  • Number of employers that have been approved for the early retiree reinsurance program as of August 31: 57
  • Number of early retirees who could benefit from the reinsurance program : 192,000
  • Number of new enrollees with Medicaid expansion: 589,965


15th District small business owners have told Congressman Dingell how the bill has helped them during economic hard times. See their comments here.

What has happened over the past 6 months

Small businesses across the country have already benefitted from the tax relief included in the Act.  Up to 4 million small businesses nationwide could qualify for a small business tax credit this year, which will provide a total of $40 billion in relief for small firms over the next 10 years.

More than one million seniors who have fallen into the prescription drug gap have received rebate checks to help them pay for the cost of their medicines.

Over 2,000 employers and unions across the country have received help that allows them to continue offering health insurance to their early retirees.  The United Auto Workers for Michigan has said about that program: "The UAW Retiree Medical Benefits Trust is pleased to be participating in the Early Retiree Reinsurance Program. The assistance provided by this program will help the Trust continue to provide health insurance coverage to 870,000 retired UAW members, along with their spouses and dependents."

The Centers for Medicare and Medicaid Services announced the average 2011 premiums paid by individuals for private Medicare Advantage (MA) plans, would decline next year, even as insurers provide additional benefits required by the new health care law.  The Act has saved beneficiaries $150 million in out-of-pocket Costs. 

Because of health reform, Blue Cross Blue Shield of North Carolina will refund 215,000 customers $155.8 million.

What’s Coming Next

Additionally, lawmakers continue to make progress under the Affordable Care Act by locating and eliminating fraud, waste, and corruption within the current health care system.  Secretary of Health and Human Services Kathleen Sebelius has pledged to cut Medicare’s error rate in half by 2012.  Further, the Administration has also been working on rules that require insurance companies to spend at least 80 percent of premium dollars on health care instead of overhead, salaries or administrative expenses, in 2011. 

The Act will provide funds to build new and expand existing community health centers, and expands funding for scholarships and loan repayments for primary care practitioners working in underserved areas.  Just this week, the Centers for Disease Control and Prevention (CDC) awarded $400,000 to Michigan State Department of Community Health to improve their ability to provide public health services.