Posted by: bluemoonbenifits | March 31, 2010

Pre-Existing Loop Hole Avoided

Agreement Reached On Pre-Existing Conditions Loophole.
NBC Nightly News (3/30, story 5, 2:40, Todd) reported that “last week some insurance companies claimed that vague language in the new law meant they could deny coverage of children with pre-existing conditions until 2014. Well, Health Secretary Kathleen Sebelius sent a harshly-worded letter to insurance companies saying that was not the intention of the law. Well guess what? The insurance company sent a letter back saying they would comply with the Obama Administration’s interpretation of these new rules.”

ABC World News (3/30, story 3, 2:15, Tapper) also reported that there is now “some clarity…on the confusion over whether or not the new law requires insurance companies to provide insurance for children with pre-existing conditions. The Obama Administration has said they will have the HHS Health and Human Services issue guidelines making it clear that insurance companies do have to do that as of September and the insurance industry has just said they will abide by those regulations.”

The New York Times (3/31, Pear) quotes Karen Ignagni, president of America’s Health Insurance Plans, as saying, “Health plans recognize the significant hardship that a family faces when they are unable to obtain coverage for a child with a pre-existing condition. … We await and will fully comply with” the new rules.” According to the Times, the White House “immediately claimed victory. In a Twitter message, Robert Gibbs, the White House press secretary, scored the tug of war as ‘Kids 1, insurance 0.’”

From NAHU
We know many of you have questions about what the newly passed health care reform legislation, H.R. 3590, contains and how it will impact you and your clients. NAHU is working hard to provide you with the information and tools you need to better understand the changes and what your clients need to know moving forward.

We have assembled two new charts this week to help you better understand and explain the provisions and timeline for implementation of the new law. The first is a very detailed chart for your reference that explains how all of the new health insurance reforms in both the Senate bill and the reconciliation bill will impact private health insurance organized by effective date. The second chart is a simplified timeline that explains how both pieces of health care reform legislation will impact your individual and employer clients. Please feel free to use these documents as part of your business and distribute them to clients if you wish.

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