Congress has passed many laws to address health insurance.
Health insurance issues confront everyone at some point. People are routinely denied coverage, or told that their coverage is being canceled due to a major illness or a mistake or false statement on an application. People who change jobs are concerned about maintaining health coverage for their children. To address the numerous issues of health insurance Congress has passed a number of landmark pieces of legislation.
Affordable Care Act
The Affordable Care Act protects children with pre-existing conditions.
The Affordable Care Act of 2010 is a massive piece of legislation contained in over 2,000 pages. Its provisions aim to change almost every aspect of health care in the United States. Certain provisions take effect almost immediately, while some benefits will not be realized until 2014 or later. Pre-existing conditions have been a thorn in the side for people seeking health insurance. As of September 23, 2010, insurers will be prohibited from excluding children under the age of 19 from health coverage due to a medical condition that predates the policy date. People who develop a major illness that is costly to the insurance company will be protected. The Affordable Care Act requires that insurers maintain their policies, and eliminates lifetime limits on the amount the insured will pay in benefits.
The legislation also bars insurance companies from canceling your insurance when you make an innocent mistake on an application. A beneficiary will have to engage in deliberate deception on his insurance application for the health insurance company to permit the insurer to revoke the coverage.
While almost everyone agrees that reform of the health care industry is necessary, many legislators and voters are fiercely opposed to the Affordable Care Act. If the legislation stays on the books, it will likely result in major changes in health insurance. But many pundits, including those who favor the legislation, believe that there is a reasonable chance that the legislation will be repealed.
COBRA Continuation Health Coverage
COBRA ensures that you have no gaps in coverage while starting a new job.
Many changes in a person’s life can cause her to lose health care coverage. Congress passed the Consolidated Omnibus Reconciliation Act (COBRA) in 1986 to ensure that people stay covered during a transitional period. COBRA requires most organizations that employ 20 more more people to extend the health insurance policy for up to 18 months to former employees. In cases of death of the employee or divorce, the spouse and children can keep her policy for up to 36 months.
While COBRA helps people keep their coverage, the cost can increase for former employees and their spouses and children. You may have to pay the entire cost of the premium to maintain coverage, and you may have to pay a higher deductible.
HIPPA
Hospitals and insurance companies must maintain patient confidentiality.
The Health Insurance Portability and Accountability Act of 1996 has a number of provisions, but the most cherished is the Privacy Rule. Prior to this legislation, some health care providers and insurance companies were careless with their handling of confidential medical information. The Privacy Rule protects your medical records, discussions with your doctor and your billing information from disclosure. Doctors, nurses, hospitals, pharmacies and insurance companies are required to maintain patient confidentiality. In rare cases, law enforcement may open records to investigate drug trafficking or violent criminal activity such as child abuse or homicide.
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