Long Term Care Health Insurance Pulled from New Healthcare Law « Health Insurance Advisory

Welcome to the New Healthcare Law Center and State News

new healthcare reform lawThe new healthcare law, called the Patient Protection and Affordable Care Act (PPACA), represents comprehensive healthcare reform legislation signed into law on March 23, 2010. It contains numerous provisions designed to protect consumers and promote low cost medical insurance, including many new taxes to pay for the cost.

In this section of the site, you can also obtain the following information specific to your state: available medical insurance options, efforts to regulate medical insurance premiums, healthcare, the individual medical insurance marketplace and the new healthcare law.

Our objective is to help Americans make sense of the new healthcare law by explaining key provisions in plain English and assisting individuals, families and the self-employed in using this information to find and secure affordable medical insurance.

Long Term Care Health Insurance Pulled from New Healthcare Law

Author: Allan Z - Founder Editor | Oct 22 2011 | General Provisions - New Healthcare Law

The new healthcare law of 2010 contained a long term care health insurance program, called the “CLASS Act.” The plan is designed to give the disabled and elderly cash to receive care at home instead of usually more expensive institutional care. This is important because individual medical health insurance typically does not cover the cost of professional care rendered in the home.

Health and Human Services shelved the long term care health insurance program because it was deemed financially unsustainable. Funding for the “Class Act” was to come from premiums paid by enrollees. Since participation in the program was voluntary, the concern was that the program could not have survived due to adverse selection. In the health insurance industry, that simply means there is not an adequate spread of risk and less healthier individuals enroll because they need benefits, but healthy persons often choose not to participate because they feel benefits are not needed or will be used.

Under the new healthcare law, workers would have begun voluntarily enrolling in the program after October 2012. Participants were required to pay into the health insurance plan for at least five years before being eligible to receive benefits.

The Congressional Budget Office had estimated the “Class Act” would reduce the federal deficit by $70 billion in the program’s first decade. However, they also warned that the program would start to lose money after the first decade or two, once benefit payments exceeded income from premiums.

Opponents of the new healthcare law point to the repeal of the “Class Act” as a reason why the individual medical health insurance mandate will not work if found unconstitutional. Currently, over twenty states are suing the federal government over the constitutionality of the individual health insurance mandate. The Supreme Court is expected to rule on the legal challenge sometime in 2012.

The individual mandate kicks in January 2014 and requires Americans to buy medical insurance or pay a fine. It also requires that health insurance companies accept all applicants and cover pre existing conditions. Currently, individual medical health insurance is medically underwritten, except for children less than age 19. As a result, not all applicants will qualify.

If individual health insurance mandate is ruled unconstitutional and medical insurance carriers are forced to accept all applicants, premiums will go through the roof because there will not be an adequate number of healthy individuals paying premiums to cover the claims of those individuals with pre existing conditions.

If you are currently unable to qualify for major medical insurance due to a pre existing health condition, then we  can help you secure low cost medical insurance. There are many medical insurance options, including the new government Pre Existing Conditions Insurance Plan.

Call us today and let us help you solve your individual medical health insurance situation.

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