There has been considerable information coming from Washington DC in recent weeks on the new health reform law. However, much of this "PR" includes considerable "spin" on the actual provisions in the law.
For example, fact sheets and other releases contain frequent mention of "affordable and more choice" when referring to the new Exchanges, which start to operate in each state in 2014. However, the new law, which is being called P PACA, tells us:
+ Each medical insurance company is to have the same rates for a specific plan in the Exchange as they do outside the Exchange.
+ Each company is responsible to maintain one pool of medical treatment expenses for all their plans in and out of the Exchange. What this says is if say five companies are participating the Exchange will not combine the medical expenses of five companies into one big pool. Thus, an important question becomes - What about the exchange makes rates affordable!
+ There are no requirements for companies participating in the Exchange to offer all their plans in the Exchange. Thus, another important question becomes - What about the Exchange gives a person more choice than they now have.
+ People, based on level of income, will be able to get financial help when they buy medical insurance through the Exchange. The problem is there is no free lunch so someone is going to have to pay the extra cost to determine a persons qualification and more importantly when financial help is given to someone, someone else will have to pay more.
Bottom line - it is important for everyone to seek out the real facts and not accept all the PR and other media about what this new law will do. It certainly is a big change but one which will cost everyone more.
Please contact if questions about the new health reform law.
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