How Health Care Reform Will Affect You

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Now that health care reform has passed the U.S. House of Representatives, odds are that it will soon be law. So let’s take a minute to see how the most sweeping changes in American health care in 40 years will change things for you.

Begin by watching the following news story that will give you a quick rundown of what’s in the healthcare bill, then meet me on the other side for more.

Now here’s a recap of those facts with a bit more detail.

For those that are uninsured

Without question, uninsured Americans will be most affected by health care reform. If you don’t have health insurance because you’re unemployed or don’t make enough to afford it, you’re going to get a subsidy to help cover the cost of coverage. The subsidy will be based on your income, but the result will be that at least 30 million people who couldn’t afford insurance will now theoretically be able to.

And if you have lingering doubts that this group of people really needed the government’s help, check out a couple of news stories we recently did about how the uninsured suffer:

So the news is good for uninsured Americans who needed and wanted coverage, but there’s another group of uninsured who may not be so happy: those that can afford insurance but choose to forgo the expense by going without. In an effort to encourage all Americans to have health insurance, beginning in 2014 these people will face fines for that kind of risk-taking. The proposed fine is 2.5% of income, up to $2,085, so the incentive to have insurance will be powerful.

That covers the uninsured minority. Now let’s take a look at the majority: those Americans who currently have health insurance.

For those who get their insurance at work

Americans who get their coverage through their employer are the largest group of insureds in this country. And ironically, considering all the bitter bickering over this bill, they’re probably also the least affected. If you’re the average Joe or Jane, you probably won’t see big changes in either cost or coverage from your employer-sponsored health insurance; at least not immediately.

If your employer doesn’t offer health insurance at work and they’ve got more than 50 employees, odds are they’re going to start. Because if they don’t, they’ll be facing major fines.

If your employer has fewer than 50 employees, they won’t be forced by fines to offer coverage; they’ll be encouraged by tax breaks to do so.

Self-employed or others who buy their own coverage

According to the Congressional Budget Office, those who buy their own insurance privately could face higher prices: up to 13% higher for a family policy. The increase would be less for an individual policy.

Whenever you’re considering these types of changes in prices (or lack thereof), keep in mind that determining cost going forward is far from an exact science. While the C.B.O. and others have estimated costs, nobody really knows the combined effects of adding 30 million new people to insurance pools, removing lifetime limits and mandating other changes that improve coverages. Further complicating the process is the fact that major changes are phased in over time, with many not taking place until 2014.

If you want to gain a greater understanding of changes coming under the new bill, go through the Congressional Budget Office report. or this 13-page publication from the Kaiser Family Foundation. Neither are written in legalese and both will help you understand a lot more.

And to see what other bloggers think of the new law, a couple more links: Stew over at Gather Little by Little shares his thoughts on the recent healthcare legislation and Mark Riddix of Money Crashers further describes how the new health insurance laws affect you.

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Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.

  • aneel panjwani

    I think we dont need reform. What we need is welfare reform. Govt should cut there expenses and make people to work for their own coverage and not to use taxpayers as piggy bank

  • victrolala

    This report fails to include how people who can't get insurance will now be able to and how that will affect them and the overall costs to taxpayers. As a contract health care provider, I am currantly not able to buy insurance from the very companies that hire me ( and will not make me an employee so they don't have to cover me) to serve those who they insure.
    Aneel – welfare is nothing compared to the tax breaks (corporate welfare) big companies receive, nor as big as health care which is one-sixth of our economy.

  • carolyn7865

    Everyone will be affected. The “uninsured” will be joining the Medicaid (Medi-cal) type of patient waiting in long lines and waiting months to receive healthcare that under the new healthcare laws will force them to participate in.
    The working person will pay more for less services. Consider HMO insurance monthly premiiums crept up to levels that old PPO insurance used to be. Now you have a group of non medical personnel making decisions for doctors. Trust me I am a physician. We physicians that are part of big groups do not get raises only the top management and Administrative physicians are getting top dollars and the same will continue with new healthcare bill.
    The seniors will get more restrictions in medication and services. Seniors are third class citizens.
    I see it every day, Baby Boomers watch out. Do Not Resuscitate orders are being pushed on the elderly.
    Probably too costly to keep alive.
    Shame on Obama and his administration.