Sebelius Flexes Muscle

March 31, 2010

Children with pre-existing conditions to be covered as of September

Health and Human Services Secretary, Kathleen Sebelius sent a letter to insurance carriers regarding the vague language in the newly enacted healthcare reform law claiming it was not the intent of the law to postpone providing coverage to children with pre-exiting coverage until 2014. The insurance industry responded that they would comply with the regulations as of September.

Retirees receiving prescription drug coverage from their former employers could find themselves with out this coverage. Employers that provided prescription drug coverage were allowed to "write off" a tax-free government subsidy of twenty-eight cents for every dollar spent and it kept many form having to turn to Medicare. Now some analysts are saying that as many as two million retirees could lose their drug coverage if companies look at cutting this benefit as a way to offset newly enacted taxes. The net effect could result in higher Medicare enrollment.

To read more in the March 31, NAHU Newswire click here.

To learn more about when various portions of the healthcare reform bill will start, click here.

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