Insurance exec: New health care rules and regs not yet clear

When House Speaker Nancy Pelosi said the health care bill would have to first be approved before Americans could learn what was in it, she wasn’t kidding.

Cal Kellogg, senior vice president/chief strategy officer at Arkansas Blue Cross and Blue  Shield, spoke to more than 250 Fort Smith Regional Chamber of Commerce members about the new federal health care law.

H.R. 3590 will expand access to health insurance, reform the health insurance market to provide additional consumer protections, and improve the health care delivery system to reduce costs and produce better outcomes. The Congressional Budget Office (CBO) estimates that the coverage provisions in the bill will cost $848 billion over 10 years (fiscal years 2010-2019). However, the major provisions in the bill would not take effect until Jan. 1, 2014, meaning the bill uses 10 years of revenue to pay for six years of coverage. Also, the uninsured with a pre-existing condition can get insurance and will allow retirees maintain coverage.

At least that’s a broad explanation of the bill from Democratic and Republican sources.

But Kellogg said it remains unclear what will come from the more than 2,400-page bill and is unsure what will come from what he estimates will be more than 200,000 pages of regulation required to implement the new law.

“Right now, the best thing is not to do anything, but wait for the rule and regulation that will clarify this thing,” Kellogg said. “We don’t know all the answers yet. … There is much more to come.”

Kellogg said business owners of all sizes should work close with their tax accountants and insurance agents to stay informed. He also said some businesses may already be eligible for tax credits designed to help them better afford the employer mandates included in the new law.

President Barack Obama’s promise that people could keep their health care plan if they liked it has several caveats, according to Kellogg. He said, for example, the new law requires all plans to extend coverage to dependents through age 26 and must include new provisions for pre-existing conditions.

Kellogg provided a handout with numerous Web links with information for small business owners. The links included:
• IRS frequently asked questions

• IRS tax tips for the small business health credit

• A health reform resource from the Kaiser Family Foundation

• A special report from Hewitt & Associates

Kellogg told The City Wire after his speech that it’s not unreasonable to consider that Obama’s promise to keep an insurance policy will be moot at some point because current insurance policies may not be available in the future.

Also, Kellogg said if Republicans manage to win enough seats in November to take control of the House and Senate, there is only a “slim chance” they will capture enough seats to overturn an Obama veto of any attempt to repeal the health care legislation.