Editor's Note: The following is the second part in a series of columns by Rep. Steve Hilgenberg on understanding health care reform:
The national health care reform package that was signed into law on March 23 puts in place numerous health insurance reforms that will roll out over the next four years. While many reforms won't take effect for years to come, numerous changes have already begun. In this column on understanding national health care reform, I want to focus on the immediate and short-term changes in the reform package and the new opportunities available to businesses and families in southwest Wisconsin.
First, I want to talk about the Small Business Tax Credit. Effective immediately, small businesses that provide coverage to their employees can receive a tax credit for up to 35 percent of their insurance costs.
Employers are eligible if they (1) have less than 25 full-time workers (or less than 50 half-time workers), (2) their average wages are below $50,000, and (3) they cover at least half of the cost of health care coverage for their workers based on the single rate.
The tax credit is designed to help small businesses afford the cost of covering their employees. This will enable employers to redirect money previously spent on health insurance to other important needs, like business growth and job creation. If you're a small business owner and you'd like more information on this new opportunity, visit www.irs.gov or consult your tax professional.
In addition to businesses, new coverage opportunities are available to children with pre-existing conditions.
Effective Sept. 23, children under the age of 19 who have been excluded because of a medical condition - asthma, diabetes, leukemia, etc. - will now be eligible for coverage under new plans and existing group plans.
More than 140,000 Wisconsin children are estimated to benefit from this adjustment. As for the long-term economic benefits, increased access to early intervention treatment is estimated to save the state millions in special education costs and productivity returns.
Also, effective Sept. 23, young adults who don't have access to insurance at work will be eligible under their parent's plan until they turn 26 years old. More than 650,000 young people are expected to utilize this extension as they transition to the job market.
Finally, several changes have taken effect to increase transparency in the health insurance market and protect consumers.
The U.S. Department of Health and Human Services just launched www.healthcare.gov, an easy-to-use website where consumers can compare insurance options, gather information on their rights and responsibilities, and report to policy-makers on problems and inquiries.
This website can be a very useful tool for local citizens, linking them to a wide variety of resources they can use to lower their insurance rates, compare health care options in their community, and identify areas where enforcement action is necessary.
In the coming weeks, I'll be releasing my next column on understanding health care reform, relating to long-term changes and the creation of health insurance exchanges.
If you have any questions, please contact my office toll-free at 1-888-534-0051 or Rep.Hilgenberg@legis.wi.gov.
- Rep. Steve Hilgenberg represents the 51st Assembly District
The national health care reform package that was signed into law on March 23 puts in place numerous health insurance reforms that will roll out over the next four years. While many reforms won't take effect for years to come, numerous changes have already begun. In this column on understanding national health care reform, I want to focus on the immediate and short-term changes in the reform package and the new opportunities available to businesses and families in southwest Wisconsin.
First, I want to talk about the Small Business Tax Credit. Effective immediately, small businesses that provide coverage to their employees can receive a tax credit for up to 35 percent of their insurance costs.
Employers are eligible if they (1) have less than 25 full-time workers (or less than 50 half-time workers), (2) their average wages are below $50,000, and (3) they cover at least half of the cost of health care coverage for their workers based on the single rate.
The tax credit is designed to help small businesses afford the cost of covering their employees. This will enable employers to redirect money previously spent on health insurance to other important needs, like business growth and job creation. If you're a small business owner and you'd like more information on this new opportunity, visit www.irs.gov or consult your tax professional.
In addition to businesses, new coverage opportunities are available to children with pre-existing conditions.
Effective Sept. 23, children under the age of 19 who have been excluded because of a medical condition - asthma, diabetes, leukemia, etc. - will now be eligible for coverage under new plans and existing group plans.
More than 140,000 Wisconsin children are estimated to benefit from this adjustment. As for the long-term economic benefits, increased access to early intervention treatment is estimated to save the state millions in special education costs and productivity returns.
Also, effective Sept. 23, young adults who don't have access to insurance at work will be eligible under their parent's plan until they turn 26 years old. More than 650,000 young people are expected to utilize this extension as they transition to the job market.
Finally, several changes have taken effect to increase transparency in the health insurance market and protect consumers.
The U.S. Department of Health and Human Services just launched www.healthcare.gov, an easy-to-use website where consumers can compare insurance options, gather information on their rights and responsibilities, and report to policy-makers on problems and inquiries.
This website can be a very useful tool for local citizens, linking them to a wide variety of resources they can use to lower their insurance rates, compare health care options in their community, and identify areas where enforcement action is necessary.
In the coming weeks, I'll be releasing my next column on understanding health care reform, relating to long-term changes and the creation of health insurance exchanges.
If you have any questions, please contact my office toll-free at 1-888-534-0051 or Rep.Hilgenberg@legis.wi.gov.
- Rep. Steve Hilgenberg represents the 51st Assembly District
