Last year, President Obama’s health care reform bill (Affordable Care Act) took effect with several new provisions that are currently in effect.  These include:

Extended coverage for young adults: Under the new law, young adults are allowed to stay on their parents’ health care plan until they turn 26 years old if the young adult is not provided health insurance from their employer.

Prohibiting denial of coverage of children with pre-existing conditions:  The new law includes new rules to prevent insurance companies from denying coverage to children under the age of 19 due to a pre-existing condition.  This provision took effect at the start of the health plan’s fiscal year (after September 23, 2010).

Prohibiting insurance companies from rescinding coverage: In the past, insurance companies could search for an error or technical mistake on a customer’s application and use this error to deny payment for services when they got sick. The new law makes this practice illegal, except on cases of insurance fraud or misrepresentation.

Non-prescription medicine ineligible for reimbursement on health spending plans: Beginning January 1, 2011, the costs of over-the-counter medicines (OTC) are not eligible for reimbursement from a health flexible spending account (FSA), health savings account (HSA) or health reimbursement arrangement (HRA) unless obtained with a prescription.

Eliminating lifetime limits on insurance coverage: Under the new law, health plans are prohibited from imposing lifetime dollar limits on essential benefits, like hospital stays.

Providing free preventive care: All health plans must cover certain preventive services such as mammograms and colonoscopies without charging a deductible, co-pay or coinsurance.

These provisions in the Affordable Care Act are extensive and can cause confusion.  Let Hood Hargett and Associates help you through the maze and ensure the new health care plan changes work for you and your employees.

Source:  www.healthcare.gov