President Obama signed into law Sunday a health reform bill that includes sweeping changes to U.S. health care legislation. What will the overhaul mean for the elderly and their caregivers? Here is a summary of changes that could impact elders.
(information compiled from government website, national news media and analysts)
Changes in Medicare
- One of the biggest changes involves the Medicare prescription drug program. The "doughnut hole" is a gap in coverage that affects millions of elderly people. Under the new legislation, out- of-pocket costs for medication will decrease each year, leading to the eventual elimination of the donut hole by 2020.
- Starting immediately, consumers who hit the doughnut hole gap would receive a $250 rebate. In 2011, they would receive a 50% discount on brand name drugs.
- The bill also includes $500 billion in Medicare cuts over the next decade. According to the government healthcare reform website, overpayments to private plans will be reduced, which will extend the life of the Medicare trust fund by 5 years.
Changes in Medicaid
- Medicaid coverage will be expanded to include 133% of the federal poverty level, Legislation requires states to expand Medicaid to include childless adults starting in 2014.
- The Federal Government pays 100% of costs for covering newly eligible individuals through 2016.
- Illegal immigrants are not eligible for Medicaid.
Insurance coverage
- Starting in 2014, insurance companies cannot deny coverage to anyone with preexisting conditions.
- Uninsured and self-employed people would be able to purchase insurance through state-based exchanges with subsidies available to individuals and families with income between the 133% and 400% of poverty level, which is $29,327 for a family of four.
U.S Government official healthcare reform website