NAIFA Blog

Six months ago, Congress and President Obama drastically overhauled the nation’s health care system, passing legislation that will affect nearly every American. The first round of the law’s provisions go into effect today, and some significant changes include: 

• No preexisting condition exclusions for children under 19
• No lifetime limits on essential benefits
• No annual limits less than $750,000
• Coverage of adult children
• No FSA reimbursement for over-the-counter drugs

Fortunately, the administration has provided a grace period allowing employers and health plans until July 1, 2011, to comply with internal appeals requirements originally scheduled to apply to employer plans today.

NAIFA is also pleased that regulators are considering a request by NAIFA and others to make it easier for grandfathered group health plans to change carriers without relinquishing their grandfathered status.

Obviously, the reform package is very complex, with measures being implemented over the next eight years. Many of the changes have not yet been fully defined and will impact both state and federal regulations. NAIFA has developed resources to keep advisors, employers and the public informed about how the new law will affect them.

• The Employer Action Plan has helped employers prepare for the reforms that go into effect today.
• An FAQ helps those affected by the legislation understand when changes will occur and what impact those changes will have on their families and businesses.
• A PowerPoint presentation provides similar information, and is an effective tool to help agents explain the law to clients. 

NAIFA will provide additional information and resources as the health care landscape continues to shift over the coming months and years.

Additional Note: Leading up to today’s first round of health care changes, NAIFA President Terry K. Headley, LUTCF, LIC, FSS, gave a presentation at the National Health Care Reform Conference in Los Angeles. He addressed the role of the advisor in the evolving healthcare system. As the system grows ever more complicated, Headley told conference attendees, agents provide an essential link between the consumer and the insurance company. “Advisors will play a critical role in assisting consumers and employers [as they] navigate through the myriad of options and arrive at informed decisions relative to managing risks, remaining in compliance to meet the new requirements, and making the best health insurance choices,” Headley said prior to the conference.