Federal health care law helps students keep coverage

As of Sept. 23, young adults can now remain on their parents’ health care plans until the age of 26 under the passage of the Affordable Care Act. An estimated 15,000 Oregon residents are expected to benefit from the law.

To commemorate the day, the Oregon State Public Interest Research Group held a press conference at Portland State, along with Joel Ario, director of the Office of Health Insurance Exchanges for the Obama Administration’s Department of Health and Human Services.

“It really is a new day in healthcare,” Ario said.

ASPSU President Katie Markey and Dana Tasson, Executive Director of PSU’s Student Health and Counseling Center,  were also present.

The event—the first of its kind to take place in the lobby of the Academic and Student Recreation Center—drew a small roomful of students and

community members.

“Up to this point these young Oregonians would otherwise have to pay much more expensive premiums for much spottier coverage,” said OSPIRG Executive Director Dave Rosenfield. “This is a really great day for young Oregonians who want to stay healthy but don’t want to go broke.”

Under the new law, which was passed last March, Rosenfield points out that health care companies also cannot drop clients because of administrative or paperwork errors. Before Sept. 23, some companies would look for small ways to justify dropping someone’s coverage, he said.

In addition, the bill makes it illegal for insurance companies to charge clients a deductible or other expensive fees for preventive care. For older individuals, insurers will not be allowed to place lifetime caps on benefits, Ario said.

At the conference, a recent Willamette University graduate Tom Pearson said he feels relief now that the law has taken effect.

“Without this new provision I would be stuck with a plan I couldn’t afford… or no plan at all,” he said. As an economics major at WU, Pearson studied the U.S. health care system. “I looked into individual plans but the cost was really astronomical.”

On Thursday, OSPIRG released a guide, “The Young Person’s Guide to Health Insurance,” that outlines consumers’ rights and responsibilities under the bill. In addition, it explains important terms and health care coverage.

An overview of the federal health care law

According to OSPIRG’s “The Young Person’s Guide to Health Insurance,” the two important dates under the new law are:

Sept. 23, 2010:

• Young adults can legally remain on their parents’ insurance plans until the age of 26.
• Insurance companies cannot drop a client’s policy when they become sick or because of paperwork errors.

Jan. 1, 2014:

• Insurance companies cannot deny coverage or increase rates due to pre-existing health conditions.
• Insurance companies will no longer be allowed to charge women more than men for coverage.
• For eligible individuals, including those who are unemployed or retired, state “exchanges” will be made available. Essentially, exchanges are state-based health insurance markets that allow individuals to negotiate better deals with insurers.
• Tax credits will be given to individuals who make under $40,000 a year to help them pay the cost of coverage on the exchange.
• By 2014, health insurance will become mandatory for those who can afford it. However, for those under 30, a minimal, lower-cost plan will be available.