Member Information on New Health Care Reform Law
On March 23, 2010, the federal government passed the Affordable Care Act of 2010. As a market leader and a company with a strong foundation, Health Care Service Corporation, which operates Blue Cross and Blue Shield Plans in Illinois, New Mexico, Oklahoma and Texas, is well-positioned to navigate the changes this law brings for our members. With our ongoing focus on our customers, we are confident we will be able to meet the demands of the new law and achieve continued success.
Blue Cross and Blue Shield of Texas (BCBSTX) is committed to working with the Obama administration and Congress to help ensure new regulations of the Affordable Care Act are implemented smoothly and fully. We are committed to working for and supporting reforms that will help to make sure all Americans have affordable coverage choices, enhance the quality of U.S. medical care and promote improved overall health in our country.
How is BCBSTX reacting to the new law and what changes will BCBSTX make because of it?
BCBSTX supported many aspects of health care reform. We are currently analyzing the law to see what changes are necessary in order to comply. Our industry has always been strictly regulated, but we always are able to comply while finding new opportunities for growth. With our ongoing focus on our customers, we're confident that we will be able to meet the demands of the new law and achieve continued success.
Will BCBSTX notify clients/members when regulatory changes apply to them?
We will notify clients and members when the regulatory changes apply.
Will passage of the new law make any adjustments or differences in members' policies or coverage?
Yes. There are benefits that go into effect for plan years beginning on or after six months after enactment. We will be providing new benefits information on our Web site and in our enrollment materials.
Is there anything members need to be concerned about?
We are still assessing the impact this new law has on our members. While some benefits go into effect with plan years beginning on or after six months after enactment, others do not go into effect for several years. We will notify members as benefits and other provisions of their policies change.
What does this law mean for the HMO product?
Changes to benefit designs that impact PPO insurance products will also apply to the HMO products.
Will there be any instance when a member's policy will be cancelled as a result of this law?
No. We will not be cancelling policies due to the new law. The law may change a policy. In that instance we will notify the member and discuss the options they have, which may be keeping the policy with the changes or looking at another policy that better fits their needs. While this law makes some changes to what is covered, it will not cause members to lose coverage.
Will the new law reduce or raise members' costs? How will it impact premiums? Will they go up in price?
The new law does not set insurance premium amounts, although there are a number of provisions that may affect premiums, including changes to a member's current benefits. The actual impact will vary based on a member’s actual circumstances. We will work with members and employers to find a benefit plan that fits their medical and financial requirements.
Will members' out-of-pocket costs increase dramatically?
The law requires changes in benefits that could affect out-of-pocket costs. Some changes could decrease costs and others could increase them, depending on the particular circumstances and the terms of the plan. Members will be notified of any changes.
President Obama has said that with the new health care bill being enacted premiums will be going down by $2,500 a year. When will this reduction occur?
President Obama was referring to a national average that will be achieved over time. The law includes some cost saving provisions and some provisions that will actually increase costs.
When will the new law take effect?
Some of the provisions were effective on enactment, while others do not take effect until plan years beginning on or after 6 months after enactment. Other changes do not go into effect until 2014 or later. We will continue to review the bill's requirements and their respective time frames to ensure full compliance with the new legislation.
Is the quality of health care/insurance going to go down?
We remain committed to advocating for and supporting reforms that will help ensure affordable coverage for all Americans, enhance the quality of our country’s medical care and promote improved overall health in our country. Our company will continue to offer the excellent products and services we have always provided.
Can BCBSTX currently support all aspects of the recently passed health care and insurance reform bills in Congress, including age limits for dependents, annual and lifetime limits, FSA restrictions, etc?
All insurance companies are on the same time line for implementing this law. As a market leader and a company with a strong foundation, we are well-positioned to navigate our changing business environment. Our industry has always been regulated, and we always are able to comply. With our ongoing focus on our customers, we’re confident that we will be able to meet the demands of the new law and achieve continued success.
