The Current Reforms in the Hospital and Healthcare Industry

Industry: Hospital and Healthcare        Added By: 247Compliance        Posted On: Aug. 30, 2019

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The healthcare norms are changing abruptly these days and with that being said, there are new statutory laws, which are overpowering and governing the healthcare industries and bringing in reforms in many ways. Ever since the formation of new healthcare policies, some transformations can be seen available in the healthcare facilities along with the advancements in medical devices as well. In the U.S., which sees a large population getting treatment and enrolling in the healthcare facilities for a healthy future, bringing in reforms in the hospital industry seems to be mandatory to treat these kinds of population. This article discusses the current reforms that can be seen in the Hospital and Healthcare industry.

As with the implementation of the Consolidated Omnibus Budget Reconciliation Act (COBRA) 1996 and Health Insurance Portability and Accountability Act (HIPAA), the insurance coverage policy has enabled many private employees to gain full access to their deserved healthcare facilities which they had no access to after they quit. Reforms could also be noted during the presidency of Barack Obama in the U.S., who fostered the 2010 scheme called, Patient Protection and Affordable Care Act (ACA), which is also penned as Obamacare. The Act enables the patients, who cannot afford the medical cost, afford their healthcare and get maximum reasonable coverage for their health insurance. The higher healthcare costs have been lowered and are now reasonable compared to what it was before the ACA.

As per the current statutory norms of 2014, the Government of the U.S. has made it mandatory to avail healthcare facilities for everyone. The new federal law imposes a penalty of $95 or considerably 1% of an employee's income for the first year when there is no health coverage policy. The penalty increases every year, with the second year being $695 or 2% of the income, the greater amount (in the percentage of the income or a wholesome designated amount) is compared and considered for filing the penalty. However, the new law holds back implementing to the families that have low income and lie below filing the income tax or to the people, who cannot afford a policy that costs more than 8 percent of their income. The rule was instigated by the vice president at the Commonwealth Fund, Sara R. Collins. This rule of penalty was taken into consideration to make sure that everyone gets the facility of good health care at ease at the time of emergency or whenever they require it.

The Medicaid, the initiative by the federal health for the poor, can now be availed by the lower waged people who are under the age of 65. Along with this, Medicaid will be given to the households with income up to 133 percent of the poverty level or a family of four with an income of about $29,327, according to the new rules. The individuals with income less than 400 percent and more than 133 percent of the poverty level, viz. from $29,327 to $88,200 for a family of four would be eligible for premium subsidies through the exchanges. Individuals, who get their health policy covered by large and influential employers, will not face any major changes in their policy coverage and neither would their coverage be affected.

With 2018 effective policy, individuals or families with pricey premium plans for health coverage are liable for a 40 percent tax on the excess premium coverage. This is also applicable for the fancy employers entertaining their employees with pricier plans, singles with a total premium of $10,200 or more, and for families with a premium of $27,500 and more. This, in turn, will impart a major difference for those who cannot afford the health policy coverage and will bring down the unaffordable costs for them by investing more on the new health policy plans and covering major significant areas in the field of healthcare and hospital policies, giving them more of the reasons to afford the health insurance and encourage safety awareness and precautions, effectively.

The new bill is expected to bring about major changes in the healthcare policies and affect the dug program and Medicare prescriptions and is also expected to eradicate the expensive plans by 2020. Apart from this, families with a higher income will be liable to pay additional taxes. Getting health policies will become mandatory to avoid invasive health effects with sudden onset of drastic health conditions in the future and reduce the cost of paying heavy penalties as imposed by federal law.