Imagery courtesy of Arthur Ball/ Connector
Reform has come to America. On March 23 the U.S. Congress cast a vote for life and the Patient Protection and Affordable Care Act became law. Two days later, the law was amended by the Health Care and Reconciliation Act.
This historic piece of legislation has two components that impact students and young Americans: health care reform and financial aid.
According to government statistics, young people are the most likely to be uninsured, with 47 percent of individuals ages 19-34 living without coverage. For young adults, the legislation intends to accomplish three things: lower the cost of insurance, provide security and stability, and offer choices.
Leslie Gilbeaux, senior fashion marketing student from Syracuse, N.Y. said, “I think it’s good for people without insurance because they can receive coverage. People have been dying because they couldn’t get help.”
The HCRA will offer free preventive coverage to all insured individuals. It will grant additional money to public health programs to advance the prevention – rather than treatment – of disease and illness.
“I’m happy about reform,” said Brian Steele, graduate advertising student from Atlanta. “But it doesn’t help much because there is no public option. I just think of it [HCRA] as a beginning.”
The legislation will ban discrimination practices by insurance companies that practice “gender rating,” charging higher premiums for women. It will also be illegal to create programs that favor higher earning employees, who tend to be older workers. Beginning in 2014, a cap will be placed on co-pays and deductibles.
“All I know is that my dad is fussing because he has to pay my [25-year-old] brother’s insurance,” said Lauren Barnes, senior fashion marketing student from Chicago.
From now until 2014, if an employer does not offer health coverage, a young person will be able to remain on their parents’ insurance plan until they turn 26. However, beginning in 2014, this provision will apply to all young people regardless of coverage offered.
“I’m excited and looking forward to getting things taken care of that I couldn’t [have before] because of no insurance,” said Tai Williams, graduate photography student from Atlanta. “My job cut out benefits in 2006 to save money. I have polycystic ovarian syndrome and have been going to the Grady clinic, but there is nothing like having a primary care physician.”
Under the new provisions, health care is no longer tied to employment. Health Insurance Exchanges will be created. Fostering competition, this exchange would afford those without coverage and those not offered employer-based coverage the benefit of group purchasing power. Individual will be able to compare health plans and decide what coverage is right for them.
This legislation will require Americans to purchase healthcare. “If you couldn’t afford insurance before, how does the government expect you afford it now?”, questioned Barnes. However, for every rule there is an exception.
If someone’s insurance premium exceeds 8 percent of their income, they will be eligible for a hardship waiver – relinquishing their obligation to purchase coverage. Instead, they may purchase a low-cost catastrophic plan, protecting them from serious illness and injury.
Additionally, exceptions will be granted for Indian tribe members, religious objectors, and persons who fall into the low-income tax bracket ($9,350 for singles or $18,700 for a married couple in 2009).
Although many are excited, there are some who remain skeptical. “It’s nice to have change, but it might be a risky gamble. I’m skeptical because I don’t know if the money will be used the way it should be. I’m also concerned that people won’t strive for a better job in order to receive better benefits,” said Vanessa Lo, graduate advertising student from Philadelphia.
Next week, we delve into the financial aid portion of the legislation.