Major Health Care Reforms Take Effect January 1

[ProSense]

Major Health Care Reforms Take Effect January 1

Brian Beutler

Starting Saturday, two of the new health care law's most significant reforms take effect -- or at least begin to take effect.

The first will dramatically clamp down on insurance industry waste, abuse, and excesses. Starting on New Year's Day, insurance companies will have to spend at least 80 percent of the revenues they receive from premiums on actual health care. Not on salaries or overhead.

Like so many of the law's early reforms, the impact of a strict "medical loss ratio" will be invisible to most consumers. But don't mistake that for insignificance. The bill's most strident critics cite this one provision as the basis for the claim that the government is "taking over" the health care system. That's a false claim, no matter how you slice it -- this is about insurance companies, not, say, hospitals or pharmaceuticals, and those insurers are all still private. They'll just have to play by stricter rules.

The other is much more visible. Senior citizens -- a demographic that's skeptical of the bill -- will see real benefits. In 2011, the law will begin to close the Medicare Part D coverage gap -- the infamous "donut hole." Seniors who reach the donut hole will now receive a 50 percent discount on brand-name drugs, the first step in a 10 year plan to fill the hole completely. Seniors will also now receive free annual checkups, screenings and other preventive care.

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[Vinca]

1. Not to rain on the parade, but do we know who will monitor big insurance

and be sure there isn't a cruise with a guy who speaks on herpes for 5 minutes included in the 80% of medical expenses? These companies cannot be trusted to do what is right . . . or even legal.

[Gormy Cuss]

2. I agree -- insurance companies will be much more creative in how they account for expenditures.

Of course, it's a step in the right direction to make them at least appear to spend 80% on care.

[3waygeek]

3. Note that no funds have been allocated to implement

these reforms, and none are likely to be allocated by the incoming Rethug-led House. That could be a problem for the donut hole & other senior-centric reforms.

[ProSense]

5. The health care bill included $1 billion for implementation

There are still funds available.

[3waygeek]

6. Thanks -- good to know that.

I was going on news reports that the continuing resolution that's keeping the government running the next few months didn't include implementation funds.

[OHdem10]

4. Have you seen the Hucabee Commercial which seems to have

buys on every available channel??

In the commercial he trashes the New Haealth Care Bill and
argues strenuously to Repeal it. Furthermore, he solicits
the American People to "sign" his petition to Repeal the Bill.

[ProSense]

7. No, I haven't

Republicans will never let up.

[customerserviceguy]

8. Especially not Hucksterbee

He must be completely full of himself since that poll came out a week or so ago, showing him above the other Repukes, even the fundies' beloved Palin. He's probably been a bit down in the dumps ever since that guy he paroled killed those four cops about a year ago.