Now what?

For many States in the Union the next few months leading up to July 1, 2010 will be somewhat  chaotic as they deal with the new federal health insurance legislation–but not Utah.  The following provisions in the federal health insurance law is important to know–but won’t really affect Utahans much since Utah has already enacted similar legislation in the past.

90 Days of Enactment

High Risk Insurance Pool

High Risk Pool:  The law now creates high-risk pool coverage for people who cannot obtain current individual coverage due to preexisting conditions. This national program can work with existing state high-risk pools and will end on January 1, 2014, once the Exchanges become operational and the other preexisting condition and guarantee issue provisions take effect. It will be financed by a $5 billion appropriation.

Utah has had it’s own high risk pool (catch-all plan as I like to call it) for many years called HIP Utah (official name is The Utah Comprehensive Health Insurance Pool–I like calling it HIP).  In Utah everyone can get health insurance coverage it just depends on where and how much you are going to pay for it.  Today your choices are private individual plans, private group plans, public Medicaid, Medicare, CHIP, COBRA, and NetCare.  The reasons for approximately 200k+ Utahans are uninsured is due to cost, apathy, they don’t want it, and/or they don’t know their options and where to get it (pssst- That’s why you need a good agent to educate you on your choices).  As for the HIP Utah plan–this legislation may infuse some money into it and help keep it a float until 2014 when all health insurance becomes guarantee issue (this will be discussed in a later post).

July 1, 2010

Utah Health Exchange

Web-Based Information Portals: The law now requires the states and the Secretary of DHHS to develop information portal options for state residents to obtain uniform information on sources of affordable coverage, including an Internet site. Information must be provided on private health coverage options, Medicaid, CHIP, the new high-risk pool coverage and existing state high-risk pool options.  The State of Utah is already a step ahead of this legislation as the Utah legislature and it’s progressive Speaker of the House, David Clark  has already enacted legislation (Obamacare super-lite) over the past two years that established an insurance exchange including an informational portal (See Utah HB 133 2008; HB 188 2009; and HB 294 2010).    Funny how the federal government is now mandating (controlling) this when private and public entities have been doing this for years. 

10% Tanning Bed Tax

Tanning Bed Tax: The law now requires a ten percent excise tax on amounts paid for indoor tanning services, whether or not an individual’s insurance policy covers the service. The service provider is to assess the tax on the customer for services performed on or after July 1, 2010.  I believe the rational here is to discourage tanning because it leads to skin cancer which will then lead to more burden/cost on the health care system.  Sounds fine on the surface but if a tan costs $10 and now it costs $11-I don’t think you are going to discourage much tanning (I don’t go to tanning salons so I am a little naive on this topic).  Seems kind of like a racist tax –I mean if you think about it only those with lighter skin go to a tanning salon to become darker–so in essence the federal government is taxing people based on the color of their skin.  I believe that is against the Civil Rights Act.  Just saying

I hope that gives you some more insight on the federal health insurance legislation.  Stay tuned for my next article which will focus on some bigger provisions that become enacted 6 months after passage (I’m sure you can’t wait!!!).  If you have any questions or comments please leave them below. Don’t forget to visit my web site at www.uthealthplans.com.  Thanks for reading!