SEC. 2715. DEVELOPMENT AND UTILIZATION OF UNIFORM EXPLANATION OF COVERAGE DOCUMENTS AND STANDARDIZED DEFINITIONS.


The signatures of President Barack Obama, Vice...
The signatures of President Barack Obama, Vice President Joe Biden, and Speaker of the House Nancy Pelosi on the health insurance reform bill signed in the East Room of the White House, March 23, 2010. (Photo credit: Wikipedia)

March, 2011 is the one year anniversary of the culmination of the nasty political debates that resulted in President Obama signing the Patient’s Protection and Affordable Care Act.  Whether is it called the Patient’s Protection and Affordable Care Act, PPACA, Affordable Care Act or Obamacare, everyone knows what law is being referred to but after a year, people are still unclear of what is in it.

Last year, after the most controversial legislation of the last 50 years became law I started explaining one section a week in the newsletter for The Insurance Barn.  In March and April my intention is to share those explanations for people who were not on the mailing list.

Each day I will share the text of a different section of the new law and my conclusion as to its meaning.  As you read them, please note that I am an insurance agent and not a lawyer.  I understand that the rules made by the Secretary of Health and Human Services may make my conclusions inaccurate.  Also, note that I understand that good people can read the same thing and come to different conclusions.

The quoted legal language is taken directly from the PPACA.  The opinion statements are my conclusions.  They may or may not be consistent with what the legal minds of the U.S. Supreme Court eventually conclude.  They are for educational purposes only so that people are able to better understand the law and plan accordingly.

SEC. 2715. DEVELOPMENT AND UTILIZATION OF UNIFORM EXPLANATION OF COVERAGE DOCUMENTS AND STANDARDIZED DEFINITIONS.
Not later than 12 months after the date of enactment of the Patient Protection and Affordable Care Act, the Secretary shall develop standards for use by a group health plan and a health insurance issuer offering group or individual health insurance coverage, in compiling and providing to enrollees a summary of benefits and coverage explanation that accurately describes the benefits and coverage under the applicable plan or coverage.  CONCLUSION  What this means to you is that by March 23, 2011 the federal government will establish standards of plan descriptions that all insurance policies must adopt.  This should allow you to compare all insurance “apples to apples” without the confusion of all the different marketing materials that are unique to each company. This is a sample of what is found in my weekly newsletter.  If you wish to subscribe for future articles similar to this you may do so by clicking on the last box in the right hand column of this blog.   The newsletter is published each Tuesday.  You will receive a copy in your email.

It has only taken 2 1/2 years but the Secretary of Health and Human Services has finally designed the new form.  It is supposed to be implemented on September 23.  It is supposed to be available to anyone who makes an application for individual health insurance or whose health insurance plan renews after September, 23 2012.

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