The new health reform law is already helping thousands of Iowans and small businesses.
Though the major provisions of the health reform law won’t be implemented until 2014, a number of provisions have already gone into effect.
The new law provides tax credits to small businesses that offer health insurance to their employees. The rapid growth of premiums over the past decade have made insurance provision extremely difficult for small businesses. According to the Agency for Healthcare Quality and Research’s Medical Expenditure Survey, In Iowa, just 28 percent of firms with 10 or fewer offered insurance to employees, compared to 92 percent of firms with 100 or more employees.
The Wall Street Journal‘s Janet Adamy reported Tuesday that the percentage of small businesses with three to nine employees offering health insurance to employees has increased significantly over the past year — from 46 percent to 59 percent. Researchers at Bernstein Research attribute that growth to the health reform law’s small business tax credits.
In addition to small businesses, health reform is helping Iowa prepare for full implementation of the law and helping Iowa’s seniors. The state received a $1 million grant to plan for a Health Insurance Exchange, one of the key components of the overhaul.
Though Medicare recipients gained prescription drug coverage through Medicare Part D in 2003, the law had a $2,000 gap in coverage — often called the “donut hole.” Early implementation of health reform lessens that gap, by providing a $250 tax-free rebate to Medicare recipients. In Iowa, 17,774 Medicare beneficiaries have received the rebate.
Posted by Andrew Cannon, Research Associate