Six months after President Obama signed it into law, the Patient Protection and Affordable Care Act went into effect on Thursday, Sept. 23. A number of key provisions are set to take effect and for healthcare plans that operate on a calendar year, many of the provisions will be enacted on Jan. 1, 2011.
The Affordable Care Act directly affects the healthcare plans of undergraduate students and their families.
The changes to all healthcare plans, individual and employer-sponsored, that are purchased or renewed after today are as follows:
• Extension of coverage: Young adults can stay on their parents' insurance coverage until they are 26, if the adult children do not receive insurance through their employer.
• No denials for children: Insurance companies cannot deny coverage to children with health conditions.
• No lifetime limits: Insurance plans cannot impose lifetime dollar restrictions on essential benefits such as hospitalizations and emergency care.
• No dropping coverage: It is now illegal for insurance companies to drop someone's coverage except in cases fraud.
• Appeals: Insurance companies must make it easier for consumers to appeal the denial of coverage of specific benefits.
For individual plans purchased after Thursday and to employer-sponsored plans that are changed significantly after the company's upcoming renewal period, the changes are as follows:
• Free preventive care: Preventive services such as flu shots and mammograms must be provided without a co-pay or deductible. Preventive care also includes blood pressure, cholesterol and diabetes testing, some cancer screenings, health counseling and routine vaccines.
• Free care for children: No co-pays for regular well-baby vists and annual examinations until age 21. The coverage includes vision and hearing screenings, blood tests, counseling and vaccines.
• Free pregnancy care: Certain pregnancy services will not require a co-pay, including screenings for iron deficiency, hepatitis B and some pregnancy-related conditions.
• Rate increases: Any increase in monthly premiums must be publicized and justified by insurance companies.
