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AMHC STATEMENT ON HEALTH CARE REFORM

MARCH 29, 2010

Overview

The recent health care reform aims to guarantee that all Americans can obtain health insurance, increasing access and ensuring the affordability of health care services. The legislation will not solve all of the problems in the healthcare system or provide instant and equal access for all. Additional research, reforms, and changes will be necessary to continue to move toward a better future for all Arkansans. But this legislation, and many of its provisions, takes an important step toward Arkansas Minority Health Commission’s vision of ensuring equal access to quality health and preventive care for all minority Arkansans.

The Patient Protection and Affordable Care Act that was signed into law by President Obama on Tuesday, March 23 and the Reconciliation Bill that was passed in the Senate will dramatically impact minority populations throughout Arkansas. When the legislation is implemented, over 69,500 more uninsured minorities will be eligible to receive coverage from Medicaid and approximately 86,000 uninsured minorities will be able to purchase subsidized coverage through state wide exchanges in Arkansas. (Source: Health Data Initiative, Arkansas Center for Health Improvement, Current Population Survey, 2007, US Census.)

Every person living in the United States will be impacted by the new laws and mandates. Some of the changes will go into effect this year, but many of the major reforms will not be implemented until 2014. Because a significant number of minority Arkansans are without health insurance and many areas lack sufficient medical facilities and professionals, many public and private institutions in Arkansas will be eligible for additional funding and grants. The Act also includes provisions that are specifically targeted at improving the health of minority populations.

What is Included in Health Care Reform

 Here is a summary of some of the changes that will be implemented in the coming weeks, months, and years.

2010

  • Insurance companies will not be allowed to deny insurance to children because of pre-existing conditions, and they will not be allowed set lifetime coverage limits for adults and kids.
  • Temporary high-risk insurance pools will be created for people with medical problems who have been rejected by insurers and have been uninsured at least six months.
  • Unmarried adults who are under 26 will be allowed to stay on their parents’ insurance plans as long as they are not offered coverage at their workplace.
  • All Medicare preventive services, such as screenings for colon, prostate and breast cancer, will be free to beneficiaries. Seniors who enter the Part D coverage gap will receive $250 to help pay for their medications.

2014

  • Insurance companies will not be allowed to deny anyone because of pre-existing conditions, and they will be banned from setting annual limits on coverage.
  • Americans who do not have insurance will be required to pay a fee of $95, or up to 1% of income, whichever is greater.
  • Medicaid will be expanded to 133% of the federal poverty level ($14,404 for individuals or $29,326 for a family of four), and the federal government will pay 100% of the Medicaid costs.
  • State-based insurance marketplaces, called exchanges, will be created. They will offer plans for people who are not eligible for Medicaid and who do not receive insurance through their employer.  These policies will be required to cover a range of benefits, including hospitalizations, doctor visits, prescription drugs, maternity care and certain preventive tests.
  • Premium subsidies will be available for individuals and families with incomes between 133% and 400% of the poverty level ($14,404 to $43,320 for individuals and $29,326 to $88,200 for a family of four). These tax credits will be given on a sliding scale, depending on income.
  • People in their 20s will have the option of buying a "catastrophic" plan that would have lower premiums.

How Health Care Reform affects Minority Arkansans

Many elements of health care reform will significantly impact minorities in Arkansas, who are more likely to be uninsured and have lower annual incomes than non-minorities. In addition to the provisions listed above, the legislation includes several components to address issues facing minority populations. 

According to the Department of Health and Human Services, 73 out of the 75 counties in Arkansas are considered “Medically Underserved Areas.” The Act includes a number of provisions that could increase funding for education and support for health care professionals in these areas, including:

  • Scholarships for disadvantaged students who commit to work in medically underserved areas as primary care providers.
  • Special grants for health care providers in rural or underserved areas
  • Funding for community-based training and education at Area Health Education Centers (AHEC)
  • Funding for maternal, infant, and early childhood home visiting programs
  • Funding for community health workers

Furthermore, many nonprofits and community-based organizations throughout the state will be eligible to participate in health-focused campaigns and programs to increase awareness and education about issues including oral health, preventive practices, childhood obesity, and breast cancer awareness.

The legislation also includes provisions to address the existing gaps in quality and reduce health disparities, by:

  • Amending the Public Health Services Act to ensure that data about health disparities across the country is collected and distributed to relevant government agencies. Both educators and policy-makers can use this information to improve current practices and develop legislation that positively impacts vulnerable populations.
  • Creating grant programs for cultural competency training for providers who serve patients with low literacy or limited English language proficiency
  • Funding grants that enable local programs to implement recommendations from the Agency for Healthcare Research and Quality’s “National Strategy for Quality Improvement in Healthcare.”
  • Creating a Patient-Centered Outcomes Research Institute to provide information and research to healthcare professionals regarding innovations and potential improvements.

Each year, institutions of higher education that serve minorities will receive a total of $255 million to help low-income students attain degrees in science, technology, engineering, or mathematics. The Centers of Excellence, which provides support for minorities interested in health careers, will distribute additional funds to enable more students to pursue their field of interest. A program that currently provides grants to encourage diversity among nurses will also be expanded.

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