Healthcare Reform Summary Timeline

Posted by IQ HSA on July 27, 2010 · Leave a Comment 

Healthcare Reform Summary Timeline

Here is the Healthcare Reform Summary Timeline of what you can expect to happen over the next few years as the new law is implemented. This report was published by Humana but applies to all the insurance carriers plans. Read this REPORT on how Healthcare Reform will impact your plan at your next renewal.

Health Savings Account (HSA) plans give you the best of both worlds in terms of lowest premium and lowest out of pocket exposure. You do not need to sacrifice benefits with a HSA. Our average client is saving $2,652.74/year on their private health insurance premiums. Call us today to find out how much you could be saving at 602-510-7507.

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Health Care Reform – Summary of Legal Challenges

Posted by IQ HSA on June 7, 2010 · Leave a Comment 

Health Savings AccountHealth Care Reform – Summary of Legal Challenges

As the battle for health Care reform heats up there are clear lines being drawn. On one side you have the federal government preparing to defend The Patient Protection and Affordable Care Act of 2010 and on the other side The Private Option Health Care Act proposal from Congressman Ron Paul.
 
Both are looking to reform America’s current health insurance system. The first looks to centralize power with the Federal Government while the later focuses on the growing popularity of health savings accounts as the central component.
 
 A quick comparison of the PPAC act with the Constitution shows that it violates more than a dozen elements in the Constitution. For the sake of brevity, here are a half-dozen items as samples:

1. The act’s duties and requirements are not enumerated powers of the federal government under Article 1, Section 8, and therefore beyond the scope of the federal government.

2. In the act, the executive branch of government is granted powers not authorized under the Constitution.  

3. Nearly all Americans are required, under the act, to purchase health insurance from private companies that in turn will be regulated by the federal government; a violation of the Commerce Clause with no precedence.  

4. Punitive action against citizens for failure to comply violates the 5th Amendment, taking rights without “due process.”  

5. The act violates Article 1, Section 9 of the Constitution, which limits the types of taxes that Congress can levy.  

6. The act violates states’ rights, the 10th Amendment, in regulating the health care industry, including health insurance, and placing all regulations under the federal government.

These are just a few of the problems with the new health.insurance reform. America will get a good feel for the status of its justice system, by closely watching these health care reform cases progress through final resolution in the Supreme Court.

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Lawsuits Challenge Health Care Reform Mandate

Posted by IQ HSA on May 20, 2010 · Leave a Comment 

Health Care ReformLawsuits Challenge Health Care Reform Mandate

 
Since March 23, 2010 when President Obama enacted the new legislation legal attacks continue to mount on one of the health care reform law's highest profile provisions – the requirement that all Americans carry health insurance or pay a penalty.

The requirement isn't scheduled to take effect until 2014, but on Friday, seven states (Alaska, Arizona, Georgia, Indiana, Mississippi, Nevada and North Dakota) officially joined 13 others in a lawsuit filed in U.S. District Court in Florida. Together, the 20 states are challenging the constitutionality of the individual mandate requiring everyone to purchase private health insurance. The states are arguing the federal government does not have the authority to force people to buy a product – in this case, health insurance. One of the nation's largest small business groups, the National Federation of Independent Business (NFIB), has also joined the lawsuit.

Since the enactment of health care reform, numerous states have filed similar legal actions, but according to the New York Times, the Florida lawsuit "could carry the most weight, and may be on the fastest track in the most advantageous venue."

The Obama administration defends the mandate as valid, saying Congress has the power to regulate interstate commerce. Last week, Justice Department attorneys provided the government's first official response on the matter – in reference to a lawsuit filed in federal court in Detroit on March 23, the same day the President signed the health care reform law. The conservative Thomas More Law Center brought the suit, alleging the mandate amounts to an unconstitutional tax.

Meantime, Missouri is the first state to call for a public vote on the health insurance mandate. The state's House of Representatives last week approved a ballot measure that says individuals and businesses cannot be compelled to have health insurance. The vote is scheduled for Aug. 3, during the state's primary election.

 
Regardless of the final impact these lawsuits or upcoming congressional elections have on the implementation of the new Health Care Reform Law, the fact remains that the only way to truly reform our health care system and the health insurance market is by putting the consumer back in control. Health Savings Accounts (HSA) are a great first step. Check out HSA Basics  to learn more.

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Health Care Reform Is Here

Posted by IQ HSA on May 18, 2010 · Leave a Comment 

Health Care Reform Is Here

Health care reform became law on March 23. There are many questions that have yet to be answered, and IQHSA.com has been hard at work to determine how health care reform will affect you and your business.

 
Many specifics of the different reform provisions remain undefined. Due to how the law was written, there is ambiguity and a need for regulatory agencies to provide clarification. In the months and years ahead, we expect federal agencies to issue regulations and guidance on many aspects of the legislation.
 
Here are seven key health care reform components effective this year:
 
1.     Small Business Tax Credits – Small businesses up to 25 employees could be eligible for tax credits for the coverage they offer employees.
2.     Dependent Coverage – Many health insurance carriers have been early adopters of the law that makes health insurance coverage available to adult children up to age 26. These dependent coverage benefits are now available.
3.     Grandfathering of Existing Policies – This is the "keep the plan you're on" language used during the reform debate. The law provides that grandfathered plans – plans that were in effect at the time the law was signed on March 23, 2010 – do not need to comply with certain reform requirements (although many apply to grandfathered plans as well). Regulations are expected to clarify what changes can be made to plans without jeopardizing grandfathered status.
4.     High Risk Pool – The new law requires that health insurers must offer coverage to anyone regardless of health status, and that goes into effect in 2014. High-risk pools are being developed in the interim to insure those who don't currently qualify for health insurance. While some states already have high-risk pools, Arizona doesn't. Gov. Jan Brewer has already replied to the Department of Health and Human Services that Arizona – which had the option to create its own high-risk pool or defer to a national pool – cannot afford to create one.
5.     Mini Exchange – Now commonly referred to as "The Web portal," this is a first step in the reform legislation that aims to assist consumers by providing private health insurance coverage information (the full exchange will be activated in 2014). Regulations have been issued that define the information insurers and others are required to submit to HHS and many health insurance carriers are compiling the information necessary to meet the May 21, 2010, submission deadline for Phase I.
6.     Reinsurance for Early Retirees – Health care reform legislation provides for the establishment of a temporary reinsurance program to reimburse participating employment based plans for a portion of the cost of providing health insurance coverage to early retirees. Final regulations have recently been issued that provide more details about the program and the application and claims submission processes. 
7.     Medical Loss Ratios – The affect of the federal law aimed at keeping health insurers' administrative costs in check is unclear, in part because federal definitions of how carriers will have to calculate medical loss ratios haven't been determined.
 
We will continue to bring you all the latest on health care reform but in the meantime we invite your comments and questions at IQHSA.com.

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Health Care Reform – New State High Risk Pools

Posted by IQ HSA on May 6, 2010 · Leave a Comment 

health care reform, health insurance carriers, health insurance coverage, private health insurance planHealth Care Reform – New State High Risk Pools

States had until April 30, 2010 to notify Washington if they plan to participate in one of the first government programs to be launched under the new health care reform law – high-risk pools for the uninsured. At the deadline the states that declined to administer risk pools are Alabama, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, North Dakota, South Carolina, Tennessee, Texas, Virginia and Wyoming, according to The Health and Human Services Department. 16 of the 18 States are run by Republican Governors and 2 by Democratic Governors.

 

Why did these states opt out of this glorious offering? Because:

1.      Although there is $5 Billion allocated for distribution to the participating states they are being asked to participate in the actual costs associated with the program.

2.      The program is slated to run through 2013 when the new provision requiring health insurance carriers to cover everyone regardless of their condition begin but there is no guarantee this will occur. This leaves the states vulnerable to additional costs and the potential of having to revamp or shut down the program all together.

The new high-risk program is essentially insurance for individuals who have pre-existing conditions and are either uninsurable or expensive to insure. So why would the states choose to opt out? Here are a few reasons:

1.      The new program is only meant to bridge the gap from where we are now to 2014 when health plans will have to accept everyone no matter their condition. States could be liable if the new law is not implemented on time or not at all.

2.      The proposed risk pools charge the same premiums that healthy people pay. Most existing high risk pools currently in place at the state level charge between 125% -200% of market rates to cover the potential risk.

3.      The proposed risk pools will have no waiting period. Existing high risk pools have waiting periods before someone could participate of 3 months or longer to protect against an individual waiting to jump in until they have a serious condition requiring medical care.

4.      The Proposed risk pools will only cover those individuals who have been without any health insurance coverage for longer than 6 months. Those who have been responsible and continuing coverage through COBRA, an existing high risk pool, or their own private health insurance plan are out of luck. The proposed risk pools will only be for those who have either been unable to get coverage or to reward those who have chosen not to pay for their own coverage.

We do not want a system that encourages people to be free-loaders leaving others to pick up the tab. This is why the main function of the pool should be to enable people who have been continuously insured to receive some relief.

I would encourage you to read Ten Small-Scale Reforms For Pre-existing (Chronic) Conditions. By John Goodman to learn a much better alternative to high risk pools for people with preexisting conditions.

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Health Care Reform – History Of Fiscal Folly

Posted by IQ HSA on April 27, 2010 · Leave a Comment 

Health Care Reform – History Of Fiscal Folly

As Statesman and Philosopher Sir Edmund Burke once stated “Those who don't know history are destined to repeat it.” This quote speaks volumes when you put into perspective of the present day fiasco of Massachusetts attempt at Health Care Reform and the past Health Care Reform efforts in Tennessee.
As spectacular failures go, it's hard to do worse than Tennessee.  The Volunteer State's early attempt to dramatically increase health insurance coverage, dubbed TennCare, started off promisingly, says Peter Suderman, an associate editor at the Reason Foundation. 
·         In 1994, the first year of its operation, the system added half a million new individuals to its rolls.
·         Premiums were cheap — just $2.74 per month for people right above the poverty line — and liberal policy wonks loved it.
·         The Urban Institute, for example, gave it good marks for "improving health insurance coverage of the uninsurable or high-risk individuals with very limited access to private health insurance coverage."
·         At its peak, the program covered 1.4 million individuals — nearly a quarter of the state's population and more than any other state's Medicaid program — leaving just 6 percent of the state's population uninsured. 
But those benefits came at a high price, says Suderman.  By 2001, the system's costs were growing faster than the state budget.  The drive to increase coverage had not been matched by the drive to control costs.  Vivian Riefberg, a partner at consulting firm McKinsey & Company, described it as having "almost across the board, no limits on scope and duration of coverage."  Spending on drug coverage, in particular, had gone out of control: 
·         The state topped the nation in prescription drug use, and the program put no cap on how many prescription drugs a patient could receive.
·         The result was that, by 2004, TennCare's drug benefits cost the state more than its entire higher education program.
·         Meanwhile, in 1998, the program was opened to individuals at twice the poverty level, even if they had access to employer-provided insurance. 
In other words, the health insurance program's costs were uncontrolled and unsustainable, says Suderman: 
·         By 2004, the budget had jumped from $2.6 billion to $6.9 billion, and it accounted for a quarter of the state's appropriations.
·         A McKinsey report projected that the program's costs could hit $12.8 billion by 2008, consuming 36 percent of state appropriations and 91 percent of new state tax revenues.  
Source: Peter Suderman, "Health Care's History of Fiscal Folly; Expanding health insurance coverage busted state budgets. Will it bust the federal budget too?" Wall Street Journal, April 23, 2010. 
Health insurance companies are taking advantage of you and you are allowing it to happen. 92% of Americans are paying 30-40% higher health insurance premiums than is necessary. The higher health insurance premiums equate to an average of $2,208.44/year.
 
Get quotes for private health insurance in Arizona here. Contact us today at 602-510-7507 to find out how a HSA can benefit you.

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Health Care Reform Law Gets Devastating Critique

Posted by IQ HSA on April 26, 2010 · Leave a Comment 

 

health care reform, health care

Health Care Reform Law Gets Devastating Critique

We have all heard the pros and cons of the health care reform law but rarely do we get a report from a prominent government official that gives this much insight to the long term effects of the new health care reform law.
Rick Foster is the Chief Actuary of Medicare, and his office has just released a devastating critique of the Administration’s health care reform law.
Before getting to details, let me say there is nothing in the report that is surprising. What is surprising is that one of the most respected agencies of the U.S. government is completely undermining the Alice-in-Wonderland fables being spun by the White House, on Capitol Hill and in the mainstream media.
Some highlights from Mr. Fosters comments on health care reform:
  • You cannot take close to one trillion dollars away from one group of people and spend it on another group of people and somehow leave those footing the bill better off.
  • You cannot give millions of people large increases in health care without creating any new doctors, new nurses or other paramedical personnel.
  • You cannot arbitrarily reduce what you are paying health care providers by billions of dollars and still expect to get the same quantity and quality of health care.
  • You cannot give millions of patients and thousands of doctors new incentives to waste medical resources and then expect health care spending to go down.
Read the entire report by Rick Foster. Excerpt taken from post by John Goodman at National Center Policy Analysis www.ncpa.org  dated April 26, 2010.
Health insurance companies are taking advantage of you and you are allowing it to happen. 92% of Americans are paying 30-40% higher health insurance premiums than is necessary. The higher premiums equate to an average of $2,208.44/year.
 
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.

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Health Care Reform – Democrats Admit Premiums to Rise

Posted by IQ HSA on April 22, 2010 · Leave a Comment 

Health Care Reform – Democrats Admit Premiums to Rise

Wednesday, April 21, 2010

Health Care Reform

Today, the New York Times reports Democrats are scrambling to prevent the predicted health insurance premium increases that are coming for millions of families as a result of their big government health care Insurance Reform overhaul.  Just one month after becoming law, Democrats, “fearing that health insurance premiums may shoot up in the next few years,” are attempting to “fix” the new law that they promised would make health care more affordable.  Unfortunately, when it comes to fixing health care, Democrats invariably rely on giving the government more authority and control.

Americans and Congressional Republicans have repeatedly cited the rising cost of health insurance as their number one concern related to health care, but after spending one trillion dollars, cutting Medicare by one-half trillion dollars and increasing taxes by over one-half trillion dollars, the Democrats’ health care reform overhaul law fails to make health insurance coverage more affordable.  The Congressional Budget Office (CBO) has repeatedly warned that the Democrats’ plan would increase health insurance premiums, something the Democrats now realize, as reported by the New York Times.  Conversely, CBO predicted the Republican Alternative would actually lower health insurance premiums without increasing the deficit, cutting Medicare, or raising taxes.

Impact on Individual Health Insurance Market Premiums in 2016
 Under Various Democrat Proposals According to CBO

Proposal

Change in Health Insurance Premiums Compared to Current Law Projections

Senate Democrats’ Bill (H.R. 3590)*

$2,100 increase

House Democrats’ Bill (H.R. 3962)**

$1,900 increase

House Republican Bill (H.R. 4038)***

$1,050 decrease

President Obama asserted that under the Democrats’ scheme, “you’re going to be able to get lower costs.” The President and Congressional Democrats also promised under the new law seniors’ Medicare would be unharmed, middle class taxes would not go up and the law would not increase the deficit.  In the rush to score a political win, what else weren’t the Democrats being forthcoming about regarding health care reform?

IQHSA.com is your complete solution for quality low cost health insurance in Arizona.

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