President Obama in his weekly Saturday morning address touted the benefits that are already been delivered under the new health insurance reform law, saying insurance companies are being held more accountable.
“After our administration demanded that Anthem Blue Cross justify a 39% premium increase on Californians, the company admitted the error and backed off its plan,” Obama said. “And this week, our Secretary of Health and Human Services, Kathleen Sebelius, wrote a letter to all states urging them to investigate other rate hikes and stop insurance companies from gaming the system.” He added that, to assist states, a new Office of Consumer Information and Insurance Oversight had been set up and those with the best oversight programs would be eligible for grants.
Obama said that four million businesses had already been informed that they could be eligible for a tax cut this year– a tax cut worth tens of thousands of dollars and which will provide coverage for millions of employees.
“Starting in June, businesses will get even more relief for providing coverage to retirees who are not yet eligible for Medicare,” Obama said. “And a little over a month from now, on June 15th, senior citizens who fall into the prescription drug coverage gap known as the “donut hole” will start receiving a $250 rebate to help them afford their medication.”
Over the course of the next month, a new patients’ bill of rights that provides information to consumers about their choices and their rights was being implemented. The bill will prohibit insurance companies from limiting patients’ access to their preferred primary care provider, ob-gyn or emergency room care, among other provisions.
Obama noted that as of September, insurance companies will be prohibited from dropping people’s coverage when they get sick. He added that when it was learned that an insurance company was dropping the coverage of women diagnosed with breast cancer, his administration on them to end the practice. As a consequence, two weeks ago, the entire insurance announced that it would comply with the new law early and immediately stop the perverse practice of dropping people’s coverage when they get sick.
“On Monday, we’ll also be announcing the new rule that allows young adults without insurance to stay on their parents’ plan until they’re 26 years old,” Obama said. “Even though insurance companies have until September to comply with this rule, we’ve asked them to do so immediately to avoid coverage gaps for new college graduates and other young adults. This also makes good business sense for insurance companies, and we’re pleased that most have agreed.”
While indicating that implementing all aspects of the health insurance reform will take time, Obama underscored that the new system will provide more control for consumers, more accountability for insurance companies and more affordable choices for uninsured Americans.
