To understand why health reforms are so important to Kentucky and its residents, it is pertinent that we examine the present situation of healthcare facilities available in state.
1. Kentucky has 13% of its population who are above 65 years of age. 19% of the residents in the state are aged between 50 and 64. This significantly large percentage older population is at a greater risk of chronic illness.
2. 80,000 Kentucky citizens, aged 50-64 do not own any health plans. Purchasing health plans for this age group can be difficult as one is too young to be eligible for Medicare and too old to be liable for higher premiums. Furthermore, 19% of the residents, between the age of 19-64 are also without medical policy in the state.
3. There are only 724,356 Medicare beneficiaries in Kentucky.
4. 65000 senior citizens in Kentucky who had owned Medicare were not eligible for Part D Low Income Subsidy and had to pay up their complete prescription drug costs.
5. Kentuckians filled about 16 prescriptions at an average cost of $49 per prescription in 2005
Once the health reforms are implemented, citizens in Kentucky will experience the following changes on their health plans.
- Residents in Kentucky will not be denied coverage on the basis of existing health conditions and medical status. Carriers have to offer health plans that provide all the comprehensive benefits which includes providing coverage of the existing medical condition
- Families with moderate annual will receive sliding scale subsidies. It means that those with a lower income will receive more protection. Subsidies and tax credits will reduce the average spending on health plans by diminishing the premiums and hidden health tax.
- 52,800 small companies in Kentucky will be provided with tax credits to encourage them to provide medical policies to the workers. What’s more, if the firm decides to purchase the group health insurance from the state based Exchange, then the rates of the premium will be far lesser and cheaper.
- Lifetime dollar limits on health plans will be prohibited, annual caps phased out and out-of pocket expenses of the residents will be regulated. This will protect 2.2 million Kentucky residents who do not have to worry about their coverage running out or having to pay unusually large amount from their pockets.
- Insurance companies will be able to rescind policies only when there is a clear case of fraud or deliberate misrepresentation. They also have to put in place a strong appeal process for applicants whose medical claims are denied.
- Insurers will not able to randomly drop people from coverage when they fall sick. This will protect 196,000 individuals who have brought their policies from dishonest insurance practices.
- There will be no discrimination on the basis of gender and health status. Women in Kentucky earlier had to pay more than male of the same age and health status to get the same coverage.
Kentucky will also witness increased funding for the existing 94Community Health Centers, Medicaid programs and National Health Service Corps to serve about 11% of the citizens of Kentucky who live in underserved areas and do not have access to any form of health plans.
