President Obama said this yesterday at George Mason University to college students, parents, faculty and HCR supporters:
"And here’s what reform will mean for so many of the students who are here today: starting this year, if you don’t have insurance, all new plans will allow you to stay on your parents’ insurance policy until you’re 26 years old."
It's important for parents and students to realize that this provision will NOT become effective until 6 months AFTER the bill is signed. I'm afraid many supporters of HCR believe this provision will take effect immediately.
We need to put pressure on Congress to fix this, NOW!
One would think "this year" means this May, when the Class of 2010 graduates (after all, the Class of 2011 graduates next year). It doesn't, at least not the way it's written into the House Acts of Reconciliation on the Health Care Bill (H.R. 4872, Sec. 2301).
Here's a link the the final mark-up that was posted on Thursday -- the one that set the clock ticking on the 72-hour countdown to tomorrow's vote:
H.R. 4872, THE HEALTH CARE & EDUCATION AFFORDABILITY RECONCILIATION ACT of 2010 SECTION-BY-SECTION ANALYSIS
And here's the applicable clause contained in H.R. 4872:
Sec. 2301. Insurance Reforms. Extends the prohibition of lifetime limits, prohibition on rescissions, limitations on excessive waiting periods, and a requirement to provide coverage for non-dependent children up to age 26 to all existing health insurance plans starting six months after enactment. For group health plans, prohibits pre-existing condition exclusions in 2014, restricts annual limits beginning six months after enactment, and prohibits them starting in 2014. For coverage of non-dependent children prior to 2014, the requirement on group health plans is limited to those adult children without an employer offer of coverage.
My primary reason for concern is personal: My son graduates on May 21. On May 22, our insurance policy drops his coverage. He won't get through underwriting for a quality, affordable individual plan. Other than expensive COBRA or a high-deductible catastrophic junk plan, he has few options. Even more frustrating, he's already launched a successful online business that he wants to keep at full time (ask me, and I'll send you the link). It's already one of the most respected and popular websites in its niche, but he can't realize his dream if he can't get health insurance.
My son is not alone. The Class of 2010 is graduating into the worst job market in decades. Many of these young adults will not move from commencement ceremonies straight into a job with health insurance benefits.
The delayed start date not only impacts this year's college graduates: Any insurance plan that "ages out" non-dependent adult children on their 19th birthday if they are not enrolled full-time in an accredited post-secondary program of study (this includes community colleges, four-year colleges and technical/vocational schools) is not subject to the requirement in by HCR Sec. 2301 if the dependent's disqualifying event takes place before the six-month wait expires.
As it relates to public perception of the bill as a whole, I have not doubt that there will be tens of thousands of angry young adults -- who right now believe that HCR 4872 will allow them remain on their parents' group plans the day the bill is signed -- when they realize that the Non-Dependent Adult Clause does not apply to them.
Contradictory talking points and fact sheets, such as this one put out by the Progressive Pulse (via the House Democratic Caucus) only add to the confusion:
Top Ten Immediate Effects When Health Care Passes:
From the House Democratic Caucus:
As soon as health care passes, the American people will see immediate benefits. The legislation will:
Prohibit pre-existing condition exclusions for children in all new plans;
Provide immediate access to insurance for uninsured Americans who are uninsured because of a pre-existing condition through a temporary high-risk pool;
Prohibit dropping people from coverage when they get sick in all individual plans;
Lower seniors prescription drug prices by beginning to close the donut hole;
Offer tax credits to small businesses to purchase coverage;
Eliminate lifetime limits and restrictive annual limits on benefits in all plans;
Require plans to cover an enrollee’s dependent children until age 26;
Require new plans to cover preventive services and immunizations without cost-sharing;
Ensure consumers have access to an effective internal and external appeals process to appeal new insurance plan decisions;
Require premium rebates to enrollees from insurers with high administrative expenditures and require public disclosure of the percent of premiums applied to overhead costs.
By enacting these provisions right away, and others over time, we will be able to lower costs for everyone and give all Americans and small businesses more control over their health care choices.
Clearly, there's a great deal of confusion out there as it relates to public expectation vs. the reality of what's in the actual bill.
I'm a Virginia resident, so I've reached out to Sen. Mark Warner's office yesterday seeking clarification as to whether the six-month delay 1) is a correct interpretation of the current language and 2) can be somehow modified before the President signs the bill into law, or repealed very quickly through legislative action that would roll the effective date back to May 1, 2010.
The staffer I spoke with expressed some interest, so we will see.
In the meantime, if you're a young adult who will be harmed by the delayed start for this provision, the parent of a young adulty who will be harmed, or just somebody who loves a young adult who will be harmed by the delayed implementation of HCR Sec. 2301, please, call your Congress person today! Ask if they are aware of this oversight and if they can get it fixed.
Update: I've created a Facebook group to raise awareness of this issue. Please join.
Facebook Group: Take action NOW to make sure Health Care Reform Covers the Class of 2010:
Update #2 : Christian Science Monitor Also Gets it Wrong: Ten Things that Happen First
Things that happen first.
The healthcare reform bill makes a point of putting first the things that are supposed to happen first. They’re in subtitle A, right up top: “Immediate Improvements in Health Care Coverage for All Americans.” Things in the bill that take effect right away include:
Insurance companies will be prohibited from placing lifetime caps – limits on the amount of money that can eventually be paid out – on their policies. They’ll face new restrictions on setting annual caps, as well.
Insurance companies also will be prohibited from pulling your coverage, except in case of fraud or intentional misrepresentation.
Children won’t be excluded from coverage due to pre-existing health conditions. Plus, children will be able to stay on their parents’ policy until age 26.
Once again, this is incorrect. There is a six-month delay in the start date. And it's a delay, not a waiting period, which means that any young adults who age out of their parents' plans before the effective six-month date will NOT be covered. Neither is the start date retroactive.
We need to put pressure on Congress to get this fixed, folks! There's going to be hell to pay when all those parents and young adults -- who right now believe this specific clause in HCR means immediate relief -- realize they've fallen through the cracks.
Update #3: Just spoke with a couple of people in Congressman Gerry Connolly's office (VA-11). The good news that came out of that conversation is that his staffers realized there's a problem and are seeing what, if anything, can be done to fix it before the vote.
Update #4: Okay...change of focus. Since the House just voted to pass The Acts of Reconciliation (that body's amendments to the Health Care Bill they passed tonight), which contains the problem-plagued Sec. 2301, we need to take our concerns to our Senators. President Obama will sign the HCR bill today or tomorrow, BUT, The Articles of Reconciliation have to go back to the Senate for another vote. This is where we can get them to change the effective start date in Sec. 2301 from six months out to immediately.
Please, start calling your Senators tomorrow!
Be sure to reference Sec. 2031 in the House Reconciliation package, specifically the provision that allows non-dependent adult children to remain on their parents' insurance plans. Point out the six-month delayed implementation date, and let them now that this means the Class of 2010, which graduates just two months from now, will not be able to stay on their parents plans. Ask them to change that start day from six-months to immediately.