WASHINGTON – Healthcare reform is already holding insurance companies more accountable and giving consumers more control, President Barack Obama said Saturday in his weekly address.
"While it will take some time to fully implement this law, reform is already delivering real benefits to millions of Americans," he said.
According to Obama, 4 million small business owners and organizations became eligible two weeks ago for a healthcare tax cut potentially worth tens of thousands of dollars this year – one designed to help millions provide coverage to their employees.
Starting in June, businesses will get even more relief for providing coverage to retirees who are not yet eligible for Medicare, according to Obama.
On June 15, seniors who fall into the prescription drug coverage gap, known as the "doughnut hole," will start receiving a $250 rebate to help them afford their medication.
"Aside from providing real, tangible benefits to the American people, the new healthcare law has also begun to end the worst practices of insurance companies," the president said. "For too long, we have been held hostage to an insurance industry that jacks up premiums and drops coverage as they please. But those days are finally coming to an end."
Obama praised successful outcomes from pressure the administration has put on insurance companies this year. After queries from Health and Human Services Kathleen Sebelius, Anthem Blue Cross of California is calling off a 39 percent premium increase.
Last week, Sebelius called on states to investigate other rate hikes and stop insurance companies from gaming the system. Also last week, HHS launched a new Office of Consumer Information and Insurance Oversight to provide grants to states with the best health insurance oversight programs.
Obama said the administration will issue during the next month a new patients' bill of rights and set up an appeals process to enforce those rights. It will prohibit insurance companies from limiting a patient's access to his or her preferred primary care provider, OB-GYN or emergency room care, he said.
As of September, the new healthcare law will prohibit insurance companies from dropping people's coverage when they get sick. Two weeks ago, the insurance industry announced that it would comply with the new law early, Obama said.
On Monday, the administration will announce a new rule that allows young adults without insurance to stay on their parents' plan until they're 26 years old.
"Even though insurance companies have until September to comply with this rule, we've asked them to do so immediately to avoid coverage gaps for new college graduates and other young adults," Obama said.
