What federal health care reform means for Vermonters

June 3, 2010

The recent passage of the landmark federal health care legislation (formally known as the Affordable Health Care for America Act) marked a pivotal moment in our nation’s history. For the first time ever, a comprehensive health care bill was passed by both Houses of Congress and signed by the President. The law will extend health coverage to 32 million Americans and help to save over 30,000 lives per year. And it will finally put an end to some of the worst insurance industry abuses so that never again will they deny you care for pre-existing conditions, charge you more if you're sick, put limits on your benefits, or increase rates with impunity.

 Highlights of the bill include:

·         Effective immediately, insurance companies are prohibited from denying coverage to children under age 19 on the basis of pre-existing conditions.  In 2014, this provision will extend to all Americans.

·         Provides federal funding to states for the establishment of a temporary high risk insurance pool to bridge the coverage gap between now and 2014 for adults with pre-existing conditions that have been uninsured for at least 6 months. 

·         Beginning September 23, 2010, insurance companies must allow children to stay on their parents’ health insurance plans through the age of 26.

·         Provides $12.5 billion in funding over 5 years for the expansion, construction and operation of community health centers and to support the work of the National Health Service Corps.  Nationally, it will double the number of Americans receiving primary care to 40 million. In Vermont, this means increased support for our 8 Federally Qualified Health Centers and their 40 satellite offices. Currently 108,000 Vermonters receive care at this type of facility  - it is expected that this number will also rise. This provision is expected to double both the number of community health centers that exist and the number of patients they see.

·         Provides a tax credit to businesses with fewer than 25 employees that purchase insurance for their employees.

·         Establishes a state-based health insurance exchange in 2014, through which Vermonters can purchase health insurance for themselves and their families. It includes federally supported premium subsidies to those with incomes up to 400% of the federal poverty line.

Although these provision mark much cause for celebration, the fight is not over.  Insurance companies, special interest groups and conservative lawmakers are stockpiling resources to stall implementation and influence voters in November.  This requires that we be both vigilant and vocal to ensure that the toughest patient protections in history are enacted and enforced.

What does all of this mean for Vermont?

There’s a lot of misinformation out there about this new law, and we at VPIRG hope to connect you with simple, accessible tools to help you understand how this landmark legislation will impact your family. Below are some resources that we find valuable. We will also keep you up to date with both challenges and victories as we move forward, letting you know where and when your support is needed to continue our fight for universal access and coverage.

White House Federal Reform Resource Page

Families USA: What Will the New Health Reform Law Do in the First Year?

Kaiser Family Foundation: Health Reform Implementation Timeline

Kaiser Family Foundation: Summary of New Health Care Reform Law