Effects of the Healthcare Reform in Iowa

In Iowa, there are 57,200 small business that can take advantage of a new small business credit on tax which will facilitate the ability of businesses to offer medical insurance to their employees, and thereby make the costs of coverage less expensive.  Iowa small businesses pay 18% more for coverage compared to large businesses, and medical insurance costs have gone up at triple the rate as wages have in the last 10 years.  This credit of tax is a pivotal step in decreasing the costs for small businesses.

Iowans had about 43,100 Medicare beneficiaries hit the gap in prescription coverage in Medicare Part D in 2009.  They didn't get any extra assistance in defraying the cost of their medications.  Medicare beneficiaries who live in Iowa that reached the gap in coverage will be receiving a check in the amount of $250 as a form of a rebate.  This will only happen once, and the checks will be processed and mailed beginning in the middle of June, and will continue to be mailed each month as new Iowans reach the gap.  By 2020, it is expected that the donut hole will completely be closed.

There are about 36,800 retired Iowans that have retired before they became Medicare eligible, and have medical insurance with their old employers.  However, the amount of businesses that continue to provide medical insurance to their employees that have retired has diminished.  On June 1, 2010, there was a program that was introduced that will give $5 billion for those employees that retired early, which will help companies to continue giving medical insurance to their retired employees.  The types of organizations that are eligible for this program are companies of all sizes, unions, and government agencies on the state and local levels.

There are a number of protections for consumers that will begin 9/23/10 or after.  There will no longer be a lifetime limit placed on insurance company policies, which will give 1.9 million residents of Iowa the peace of mind of having policies that will never run out of benefits.  Also, 171,000 people in Iowa will be protected from medical insurance companies dropping their coverage because of getting diagnosed with an illness.  In addition, children with pre-existing conditions must be accepted by insurance companies in Iowa.  Annual limits placed on medical insurance plans will be strictly regulated, which will protect about 1.7 million Iowans that have medical insurance with their employer, and people that apply for new insurance coverage.  Also, if a claim is disputed by a consumer, insurance companies will have to produce a process of appeals that will make it easier for consumers to file a dispute.  Pre-authorization will be banned in new plans that would normally require a pre-authorization to see a primary care provider, including someone's ob/gyn.

Also to begin on September 23,2010 or after is an extension of coverage for young adults.  This means that medical insurance companies must let children up to the age of 26 stay on their parents' plans.  The only exception is if the adult child is offered coverage through a job.  This will help about 8,330 people in Iowa that can remain on their parents' plans.  Some companies, and most medical insurance companies have already begun to cover the adult children earlier than September 23, 2010.

The federal government is funding $34.5 million beginning on July 1st to go towards an insurance plan for people that do not have any insurance, that have medical pre-existing conditions.  This will be called a pool of high risk.  This program is a temporary program to help those uninsured with pre-existing conditions have coverage until 2014, when the medical insurance companies will no longer be able to decline applicants because of medical pre-existing conditions.  In 2014, people will be able to gain affordable coverage through the medical insurance exchanges that will be set up.  This pool of high risk can be run by the state of Iowa, or the federal government if the state does not want to run it.

On October 1, 2010, Community Health Centers will be receiving additional funding, which will allow them to see twice the amount of patients that they currently see over the next 5 years.  There are 83 Community Health Centers in Iowa, and this money can go towards them and also help to build new centers.

Also starting on October 1, 2010 is funding that will be provided for the National Health Services Corps to encourage medical professionals to practice their specialty in areas of Iowa where health professionals are needed.  About 8% of Iowans live in an area that has a shortage of medical facilities and physicians.

Iowa now has the choice to get Federal Medicaid to cover low-income people, regardless of their age, family status or disability.