Law Offices of Steven M. Adler, PLLC
 
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Adler Law E-Newsletter
July 2012

Steven M. Adler, Esq.
Steven M. Adler, Esq.

Law Offices of Steven M. Adler, PLLC
666 Old Country Road, Suite 605
Garden City, New York 11530

 

Phone: (516) 876-1105
Fax: (516) 794-0463
Greetings!

Welcome to our June 2012 edition of the Adler Law E-Newsletter. This month, we briefly discuss some of the pros and cons of Obamacare and what it means to us.

 

I hope everyone has an exciting and safe July 4th holiday!

 

If you have not done so already, please "Like"my firm's Facebook page and you can download free sample New York Power-of-Attorney, Health Care Proxy and Living Will forms. Thank you.

 

As always, if you have a question or concern with respect to any particular legal subject, please contact me or Dolores Jannuzzi, Esq. and we would be happy to discuss your topic in a future issue of Adler Law. In addition, if you know of someone who may be interested in receiving this newsletter, please forward it to them by clicking the "Forward Email" link at the bottom of this page.


Thanks and have a great day.

Sincerely,
Steven M. Adler

How Will Obamacare Affect Us?

Now That The Supreme Court Has Spoken. 

 

ObamaObamacare is the popular name for the Patient Protection and Affordable Care Act of 2010. Parts of it have already affected you, someone you know and the economy overall. The most controversial part, the mandate that everyone must purchase private health insurance or pay a fine, won't kick in until 2014.

 

 
Despite all that has been written about it, many people are still confused or unaware of how it affects them and their family. Here's a short summary of the alleged pros:

 

If You Already Have Health Insurance:

 

Obamacare may improve the benefits you already receive in the following ways:

 

1. It allows you to add your children up to age 26 to your health insurance plan.

 

2. Your insurance company can no longer drop you if you get really sick.

 

3. It can't limit the coverage you receive over your lifetime.

 

4. If you have a chronically ill child, you no longer have to worry about losing coverage if you change your insurance. That's because the new insurance plan can't deny coverage to children with pre-existing conditions.

5. If you have a pre-existing condition, and you get denied coverage by a new insurance company, you can get temporary health insurance coverage until 2014. That's when insurance companies can no longer deny coverage to adults.
 
6. You may receive a rebate this year from your insurance company. Obamacare requires that they spend at least 80% of premium payments on medical services, instead of advertising and executive salaries. If they can't, the money goes back to you.
 
7. Insurance companies must submit justification to the states for all rate hikes. Obamacare provides funding to the states to administer this.
 
8. You may not have to pay a co-pay for wellness or pregnancy exams. Only plans that were "grandfathered in" were exempt from this Obamacare law.
 
Many people are concerned that their company will cancel their health insurance, forcing them to go on Obamacare. Hopefully, that won't happen. Companies offer health insurance as a benefit to attract good employees. They see it as cheaper than offering higher wages, because they don't have to contribute their share of payroll taxes.

 

Obamacare supporters also argue that our premiums may even decrease over time because Obamacare is designed to lower health care costs. By allowing parents to add their children, more healthy people are paying premiums but not using the system as much. This adds to health insurance companies' profits, which should mean lower premiums over the long run. 
 
The Act also requires everyone to have health insurance by 2014. Hopefully, this will mean that more people will use preventative medical care, instead of waiting until they have to go to the emergency room. The average emergency room visit is $1,265, and hospitals have to eat this cost for indigent patients. When these costs are transferred to insurance companies or prevented, hospital costs, and therefore overall health care costs, will drop.  Most people, however, do not believe they will ever see lower health insurance premiums.

 

If You Don't Have Health Insurance:
 
Starting in 2014, you will be required to purchase insurance or pay a penalty of as much as 2.5% of your income. You can shop for the insurance that meets your needs on a state-run exchange.   

Exchanges will allow you to compare health plans before you buy one. The exchanges will also help you find out if you qualify for tax credits or other government health benefits. States are being given substantial Federal grants to fund the exchanges.  

If You Can't Afford Health Insurance:
 
In 2014, you may qualify for Medicaid if your income is under 133% of the poverty level (roughly $14,000 for an individual, or $29,000 for a family of four). This will be funded by the Federal government for the first three years, and 90% after that.

 

If you don't qualify for Medicaid, you may be eligible for a tax credit if your income is under 400% of the poverty line (roughly under $43,000 for an individual, or $88,000 for a family of four). You get the tax credit each month, instead of waiting for your annual tax rebate. You may also qualify for reduced copayments and deductibles.
 
If You Are on Medicare:

 

You now receive many wellness and preventative care visits for free.  If you have Medicare Part D, you received $250 in 2010 to help pay for prescription drugs if you fell into the "donut hole." In 2011, you get a 50% discount on brand-name prescription drugs, and 7% on generic drugs if you fall into the donut hole.
 
If You Are a Small Business Owner:

Obamacare requires businesses with 50 or more employees to provide health insurance. If you have fewer than 100 employees, you can shop for insurance in state-run exchanges in 2014 that should provide cheaper alternatives than are available now. If you refuse to provide insurance, you will be fined $2,000 per employee for all but the first 20 employees. However, businesses with 25 employees or less who provide insurance can qualify for a tax credit (35% now, 50% in 2014). If you have fewer than 50 employees, you don't have to pay a fine if your workers get tax credits through an exchange. If you offer health insurance as a benefit to early retirees 55-64, you can get Federal financial assistance.

 

What are the Obamacare Cons?

The conservative think tank The Heritage Foundation lists the following disadvantages of Obamacare:

1. New taxes, penalties, and fees will discourage businesses from growing, lowering economic growth by $706 billion and costing 800,000 jobs.

2. The Federal government will force 18 million of the uninsured to go on Medicaid. Despite this, millions will still remain uninsured.

3. Each year, $125 million will go towards subsidizing school-based health centers and programs to reduce teen pregnancy, with no requirement to reduce abortions. Parents won't know what services their children will receive.

4. Half of those on Medicare Advantage might lose this coverage thanks to rate increases.

5. Health care costs may actually rise thanks to $47 billion in new taxes on drug companies and medical device makers.

6. Nearly two-thirds of doctors are considering abandoning any kind of government-sponsored health care insurance, stating that regulations are too high and reimbursement too low.

7. By forcing States to accept federally-mandated health insurance, the Act violates States' rights.

8. Small businesses, the drivers of new job growth, will be especially penalized by $52 billion in new taxes and new IRS reporting requirements.

9. Despite $500 billion in new taxes, Obamacare will increase the deficit by $500 billion over the next 10 years.

Clearly the fight over Obamacare is far from over.  Bur for now, we need to prepare for it.  What's the future have in store for Obamacare?  Only time will tell.
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The Law Offices of Steven M. Adler, PLLC are committed to providing their clients with the highest level of professional legal services at reasonable prices. Steven M. Adler, Esq., along with the rest of his law firm's highly competent support staff, gives all of his clients the personal attention and the legal expertise which they are entitled to receive. The Law Offices of Steven M. Adler, PLLC takes pride in the quality, effectiveness and efficiency of their legal services.


Law Offices of Steven M. Adler, PLLC
666 Old Country Road, Suite 605
Garden City, New York 11530
Phone: (516) 876-1105
Fax: (516) 794-0463


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