Some Americans May Not See New Health Care Provisions For Months

Aug. 17, 2010— -- The first changes under the new health care law will start rolling out next month, affecting a range of issues from coverage of pre-existing conditions, to the maximum age children can remain on their parent's health care plan. But not all Americans should expect to see those benefits right away. In fact, some may not see them until well into next year.

Insurance companies are obligated to include the new measures when health insurance policies are renewed, starting on or after Sept. 23, 2010. Which means that if an insurance policy is renewed on Sept. 1, those covered under the policy may not be eligible for the benefits under the new law until Sept. 1, 2011.

Additionally, several provisions may vary depending on where people live. The way high risk pools are implemented vary from state to state, for example, as do the limits on how much insurance companies can raise their premiums.

The health care changes come at a time when states are grappling with increased economic stress and lower budgets, leading many to look toward the federal government for assistance.

The Department of Health and Human Services is giving $51 million to states to help them review increases in health insurance premiums. Meanwhile, many states have had to implement substantial changes to their own rules to give their insurance commissioners the right to enforce the consumer protection standards that HHS has called for as part of new consumer protection policies.

And there are many more challenges awaiting states as the health care law rolls out.

"There are infrastructure challenges as well as eligibility systems issues and coordination issues that states are certainly going to have to deal with, and are already beginning to deal with," said Jennifer Tolbert, a health policy analyst at the Kaiser Family Foundation.

Experts say most of the short-term changes were anticipated by insurance companies, but it remains to be seen how more complicated elements of the health care reform law are implemented, such as the creation of an insurance exchange, a marketplace where people would be able to shop for coverage.

There is also concern that the money coming to the states from the federal government "may not be sufficient to last through 2014," said Leighton Ku, a professor at the George Washington Department of Health Policy.

But because states and the federal government, at this point, are required by law to go forward with health care reform, they will likely ask Congress for more funding to fully implement the law in the next few years.

"Given the current budget environment, and given what happens when elections come in November, that may or may not be true, but nonetheless they are all committed to pressing on with their plans," he added.