Late in 2009, the Ohio legislature passed provisions as a part of its budget impacting health care in Ohio (H.B. 1 Health Care Reform Provisions). These new laws are hoped to add as many as 100,000 uninsured Ohioans to insurance plans over time. Some of the new provisions are:
- Open Enrollment Program Changes – These changes affect how much insurers can charge individuals who enroll in open enrollment plans. Insurance plans can eventually charge no more than 150% of the lowest standard rates for coverage for individuals enrolling. This is designed to make insurance more affordable for those with chronic medical conditions. It is estimated that these rules will add as many as 52,000 uninsured Ohioans onto insurance plans. The new provisions begin to affect policies renewing or being newly issued after January 1, 2010.
- Continuation of Coverage for Unmarried Children – This provision expands the age for coverage eligibility for unmarried children to age 28. This change applies to coverage provided through insurers, health insuring corporations and public employee benefit plans. The new rule goes into effect July 1, 2010 for plans renewing after that date or for plans being newly issued. This provision is estimated to add as many as 20,000 new Ohioans to insured plans.
- Section 125 Plans – Companies insuring ten or more employees will be required to offer uninsured employees the chance to buy health insurance using pre-tax dollars. This is estimated to save roughly 40% off insured’s premiums through reduced employee income taxes. This provision will be phased in over the coming years. It is anticipated this change will add 37,000 Ohioans to insurance plans.
- State Continuation – Sometimes called “mini-cobra,” this is a continuation of coverage provision for companies with less than 20 employees. If employees lose coverage, they can maintain their individual or family coverage at their own cost. The program has now been extended to 12 months permanently and to 15 months temporarily.
- State Income Tax Benefits for “Qualifying Relatives” – Individuals with employer sponsored medical insurance plans can be given positive state tax considerations for covering “qualifying relatives” and other members of their taxpayer household. These considerations occur regardless of income and support requirements. This provision is listed in the ORC Section 5747.01(11) (c) and (d).
- Establishment of the “Health Care Quality Council” – This group has been established to represent a wide array of health care and health insurance constituents in Ohio. The group will advise the Governor and the General Assembly on issues relating to health care and health care insurance. The group is intended to advance ideas and strategies for improving costs, quality and access to health care in the state of Ohio in both the public and private sectors.
The Ohio Department of Insurance has set up a hotline for questions regarding these new rulings: 1-800-686-1526. More information is also available at the link below:
http://www.insurance.ohio.gov/Consumer/Documents/Consumers%20-%20FAQ%27s%20on%20HB%201.pdf