WHAT DOES HEALTH REFORM DO FOR AMERICANS? by Theda Skocpol, Harvard University, and Lawrence R. Jacobs, University of Minnesota The Affordable Care and Patient Protection Act that was passed by Congress and signed into law in March 2010 sets in motion reforms in U.S. health insurance coming into full effect in 2014. Most Americans are confused about what the law promises – and no wonder. Opponents falsely decry the law as a “government takeover of health care.” Supporters are often tongue-tied, implying that the reforms are too complex to explain.But that is not true. The core parts of Affordable Care are easy to explain, and polls show they are popular with most Americans. Health Reform Does Three Important Things: • Sets New Rules of the Game for Insurance Companies Most working Americans will still be covered by private health plans. But insurance companies will not be able to dump policyholders who become ill or refuse coverage to people with longterm health problems. Insurers must make profits by offering coverage to all applicants and improving the quality and affordability of care. They will be required to spend at least four of every five premium dollars on medical care – instead of padding bottom lines or inflating bonuses for executives. • Makes Health Coverage Affordable for Individuals and Businesses Health reform will make coverage affordable to more than nine of every ten U.S. citizens and legal residents. Special credits will make private health plans affordable for middle-class families (earning up to $90,000 a year), and for businesses facing high insurance costs. Additional millions of Americans who work for modest wages will become eligible for expanded Medicaid coverage in their states. • Establishes Health Exchanges for Comparison Shopping Health Exchanges are markets to let people and businesses shop for health plans whose benefits are described and compared in plain English. By going to a website, citizens and businesses will be able to see what health insurance plans are available and decide which kind of coverage, at what price, they might choose. Exchanges will also let people know if they are eligible for the new credits to help pay for coverage. Every state – from Oregon and Vermont to Texas and South Carolina – has the right to take a strong role in implementing health reform. Its own elected officials, businesses, health providers, and citizen groups can decide how to set up their state’s health exchange and other programs to fit local conditions. Health reform does not impose “one size fits all” and the proof is evident around the country in red and blue states that are already putting health reform in place in various creative ways. Citizens groups can get involved in state-level decisions. For further information, see Lawrence R. Jacobs and Theda Skocpol, Health Care Reform and American Politics: What Everyone Needs to Know (Oxford University Press, updated edition, 2012). scholarsstrategynetwork.org June 2013; updated from May 2012
Posted on: Sun, 11 Aug 2013 01:20:44 +0000
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