the Informer

Health care Reform: What does it mean for me?

On Sunday the long-awaited health care reform vote took place, voting in favor of reform with a close, partisan vote of 219-212.

Some of the new legislation takes affect immediately while other aspects will be implemented over the next few years.
Students who are nearing graduation are happy to hear that they will no longer be booted off their parents’ insurance plans, but now have until age 26 to come across their own solutions for insurance through employment, plan purchases or other opportunities.

Now, insurance companies are unable to drop or deny coverage to patients who fall ill or have pre-existing conditions. If you buy a policy, your insurance company can no longer place a cap on how much it will cover. And new insurance plans have to provide coverage for preventative care without a co-pay.

Other parts of the bill will take place throughout the next few years, culminating most major parts by 2014.

Small businesses and self employed or unemployed Americans will be able to utilize exchanges, allowing the purchase of less expensive coverage. Under this clause, insurers will no longer be able to turn away people with pre-existing conditions or charge them more than clients without pre-existing conditions.

Amendments are already being made by the House to be voted on by the Senate.

Should these proposed changes take place, Americans will be required to purchase coverage by 2014, or face a fine of $95, or 1 percent of their income, whichever is greater.

If coverage is not purchased by 2015, the fine is increased to $325, or 2 percent of income, and by 2016 the fine will be $695 or 2.5 percent of income. Poorer Americans, that is households of four or more that make up to $88,000 annually, however, will receive subsidies as part of a hardship exemption.

Many families will be provided with tax credits in order to offset the cost of health care premiums, which will be decided based on annual household income.

On Wednesday, President Barack Obama issued and signed an executive order declaring that federal funds cannot be used to fund abortions. The bill also denies coverage to people who have entered or may be living in the U.S. illegally.

Consumers will also face new regulations in food services and indoor tanning salons, according to CNN.com. Restaurants with more than 20 locations will now be required to display calorie information next to food items on menus, along with contextual information on food consumption. Nutrition facts will also be required to be posted on vending machines and drive-thru menus, but specials, condiments and test market foods are exempt.

Indoor tanning policies have also changed. Those wishing to tan in a salon will be faced with a 10 percent tax after July 1 of this year, due to being classified as “carcinogenic to humans,” by the International Agency for Research on Cancer, an affiliate of the World Health Organization, according to CNN.

These are just a few of the many changes in the 2,000-plus page bill. Any citizen who wishes to read the bill from cover-to-cover can do so at the Senate Web site: www.senate.gov. However, the bill is written in legislative jargon. For a more in-depth look in laymen’s terms, visit CNN.com/health.

Student Loan Overhaul

Buried underneath all of the health care reform news on Sunday was another important and pressing bill regarding student loans as part of the budget reconciliation legislation.

This legislation shifts all lending from the bank-based Federal Family Education Loan Program to the Direct Loan Program, according to Inside Higher Ed, and will use $61 billion in savings over 10 years for the Pell Grant Program as well as other education priorities.

Much of the original legislation has been lost in overhaul, even though it was passed through the House last fall.
Lost to the new legislation are several billion dollars that had initially been planned to reduce interest rates on student loans; funding for President Obama’s American Graduation Initiative, the goal of which was to graduate about 5 million more students through community colleges by 2020; both among other large budget cuts.

However, in the midst of funding that was kept in the budget, $2 billion is directed to fund a Department of Labor career-training program that has yet to receive funding thus far, in spite of its creation in last year’s economic stimulus bill. And $1.5 billion is set aside for newer, income-based repayment options for students who have taken out loans for school.

One issue was magnified upon discussion: The Pell Grant. Pell Grants are awarded as a post-secondary, educational federal grant program through the U.S. Department of Education.

These grants do not require repayment and are awarded based on financial need, which is determined by Congress after reviewing each Free Application for Federal Student Aid, or as students know it, FASFA. This loan overhaul guarantees that the government will be able to meet the high, and ever-increasing demand for Pell Grant funds without sacrificing awards for current or future recipients.

The Associated Press reports that private banks will no longer receive fees from the government for acting as middlemen in loans to low- and middle-income college students.

These savings will be used to increase Pell Grants for students in need as well as make it easier for many workers plagued by student loan repayments.

Beginning in 2014, many college graduates will be barred from devoting more than 10 percent of their monthly income to repay student loans, as opposed to the current cap of 15 percent.

The college loan bill still needs Senate approval, however, it is expected to pass even though there are some opponents in all parties.