Let’s take a look at what the newly passed healthcare reform will mean to you as an individual.

If you have health insurance, your coverage is going to become more stable and secure with the passing of the bill. If you aren’t insured, health insurance will be more affordable.

Those without insurance will have immediate access to affordable insurance through a temporary subsidized high-risk pool. Additionally, there will be provisions for providing preventive care (well visits). This should make a difference in the high costs we currently pay for emergency room visits; individuals who have been visiting the emergency room because they can’t afford to see the doctor and have let their situations deteriorate to the point of needing emergency care will now be able to seek medical attention from their doctors.

Insurance companies can no longer deny children with pre-existing conditions, such as asthma or diabetes, healthcare coverage. This portion of the plan will take effect six months from now. In 2014 anyone with a pre-existing condition will be able to get health insurance.

Seniors who have hit the “donut hole” in their Medicare benefits will be provided with a $250 rebate in 2010. In 2011, it will eliminate co-payments for preventive services and will exempt the visits from Medicare-set deductibles.

Many of us believe this will be even more detrimental to the already outrageous deficit; however, experts say this bill will actually contribute to the largest deficit reduction since the 1990s. They expect the new healthcare reform to reduce the current deficit by at least $100 billion during the first decade and even more during the second.

When individuals say this is a “government takeover of healthcare” you might ask them to point out what it is about the bill, specifically, that makes them believe this. I, for one, believe healthcare reform has been a long-time need that finally has reached its destination – just think of what our nation’s children might be able to accomplish in school if they are kept healthy!

With the approval of the healthcare overhaul including approximately $455 billion in spending cuts for Medicare as well as other federal healthcare programs in the next 10 years, many have questions about how the reform will affect the Medicare program for the elderly.

Will Medicare experience a cut in benefits?

Most of the spending cuts will be in Medicare Advantage, which is a program that utilizes private firms like UnitedHealth Group and Humana to provide Medicare benefits. Traditional Medicare will not suffer from cuts in budget. What will likely be cut is some of the extra coverage that Medicare Advantage private firms offer as these subsidies are brought more in line with the cost of traditional Medicare benefits. The plan will bring Medicare Advantage rates to a halt in 2011 and will then be gradually reduced; this gives the companies some time to adjust to the change in rates.

Will there be changes to the Medicare Benefit bill?

Yes, Medicare will be increasing reimbursements for primary care physicians as well as begin to pay from annual wellness visits. Health analysts believe that regular wellness checks will help improve the overall health of the elderly, thus providing better coordination of care.

The Medicare drug prescription program is being improved, closing the “donut hole” – a significant gap in coverage of prescription medication coverage. In 2010, those who fall into the donut hole will receive a rebate of $250. They will get a 50 percent discount on brand-name drugs in 2011. By the year 2020, the donut hole will be closed covering 75% of prescription costs.

How will Medicare achieve savings?

The goal of the legislation is to capture productivity savings within the healthcare system to save Medicare dollars. It will provide Medicare with the ability to test payment systems that seem to promote better efficiency and coordination of care while at the same time improving or maintaining quality of care.

The hope is that the program will save billions of dollars by not duplicating services and providing the coordination of care those with chronic conditions need. Essentially, the aim is to reform systems in a way that will reward the quality, rather than the quantity, of services.

An independent payment advisory board will be established to make recommendations on how Medicare can extend financial solvency and how to save money in the program.

More money will be put into preventing Medicare fraud as well.

What will happen to the Medicare payroll tax?

The bill will cause taxes to be increased from 1.45% to 2.35% for those who earn $200,000 or more per year and for couple earning $250,000 or more. Som investment income for those in the high-income groups will also be subject to this tax.