HealthBridge's In-Home Care Blog

If you're like most senior caregivers, the health reform bill gave you butterflies from the start. Not because of your political opinion of the bill, but because you remembered something that many people had forgotten: American seniors already have government health insurance.

You knew that regardless of the bill's impact on the Joe the Plumber, it would have a material impact on your senior loved ones.

Like all political animals, the bill is neither as grand nor as sinister as our Representatives would have us believe.

But, it will affect senior citizens in 6 key ways. Here's how:

1. Medicare. The dreaded Medicare Prescription Drug doughnut hole is set to shrink. Seniors who reach the prescription drug coverage gap in 2010 will receive a $250 rebate. Starting in 2011, drug companies will offer a 50% discount on their brand name medicines that are purchased in the doughnut hole.
2. New Taxes. Medicare payroll taxes are set to increase by 0.9% to 2.35% and investment income will rise to 3.8% for taxpayers earning more than $200,000/single $250,000/joint.
3. Medical Tax Deductions. Beginning in 2013, the threshold for itemized medical deductions rises to 10% of adjusted gross income from 7.5%, as it is today. Seniors over 65 will be exempt from this rise until 2016.
4. Advantage Plans. Medicare Advantage plans are now required to spend 85% of their revenue on patient care. Also, federal payments to Medicare Advantage plans are frozen at 2010 levels.
5. Retiree Health Plans. Some seniors have enjoyed retirement health benefits from their former employers. The new law will reimburse employers for claims between $15,000 and $90,000. These payments will be used to lower the costs for the people enrolled in the employer plan. This program will end in 2014 and will not apply to retirees who are eligible for Medicare.
6. Long Term Care. Beginning in 2011, workers can enroll in a national long term care insurance program called the Community Living Assistance Services and Supports (CLASS) program. Workers will use voluntary payroll deductions to finance the program and, after a five year vesting period, can use the benefits to pay for non-medical home care and assistance.

The most hotly contested part of the health care reform bill will have no direct impact on seniors.  Since seniors have access to Medicare, they're excluded from the mandate that all (excuse me, most) Americans buy health insurance.  And, they're insulated from the impact of the state insurance exchanges.  

Now as for their caregivers like you and me, that's a different story.  

How do you see health care reform affecting seniors?