WASHINGTON, D.C. — Congressman David Wu announced that the new Patient’s Bill of Rights, passed as part of the health care reform law, goes into effect today.

“These patient rights and protections were designed to put you and your doctor—not an insurance company bureaucrat—back in charge of your health care,” said Congressman David Wu.  “These protections will stop the worst insurance company abuses and will continue to be expanded in the coming years, providing families with the stability and flexibility they need to make the health care choices that work best for them.”

The Patient’s Bill of Rights substantially changes the rules of the road for insurance companies.  For example:

Then:  Insurance companies were able to retroactively cancel your policy when you became sick if they found a simple, unintentional mistake on your paperwork.
Now:  Insurance companies are prohibited from rescinding your coverage when you get sick, unless you have committed fraud or intentionally misrepresented facts.  (This applies to all insurance plans.)

Then:  Every year, thousands of families were denied insurance coverage for their children when the child was born with a health condition or became sick.
Now:  Insurance companies are not allowed to deny coverage or limit benefits for children based on a preexisting condition.  (This will be expanded to adults in 2014 and applies to all employer plans and new individual plans.)

Then:  Many people who got sick or had an accident went bankrupt because they reached their insurance plan’s lifetime or annual limit for coverage.
Now:  Lifetime limits are now prohibited and annual limits are being phased out, ensuring that families will no longer go broke or lose their homes due to the insurance company benefit caps.  Annual limits will be entirely eliminated by 2014.  (Lifetime limit rules apply to all insurance plans; annual limit rules apply to all employer and new individual plans.)

Then:  Young adults often went without health care coverage as they launched their careers, putting them at risk of financial ruin after one accident or major illness.
Now:  Young adults may stay on their parents’ insurance plan until their 26th birthday, if they do not have their own employer-sponsored coverage.

Then:  Each year, thousands of Americans were hit with exorbitant charges from their insurance company for using an out-of-network emergency room after they got sick or injured while away from home.
Now:  Insurance companies are not allowed to charge higher cost-sharing for emergency services that are obtained outside of the plan’s network.  (This applies to all new plans.)

“I supported health care reform because I believe that Oregon families deserve quality, affordable health care coverage,” said Wu.  “The Patient’s Bill of Rights is another step toward building a stable, dependable health care system that helps all Americans get and stay healthy.”

All of the above provisions take effect for the next plan year for each specific plan, starting on or after today.