The protections apply in the Northern Marianas because Sablan, together with other insular area representatives in Congress, insisted that the insular areas be included in this aspect of health care reform.
Here’s Sablan’s statement:
“Starting on Sept. 23, a slate of key patient rights and protections began to take effect for the American people, including those in the Northern Marianas. These protections are designed to put you and your doctor — not health insurance companies — in charge of making the decisions about what care you need and can afford.
“Up until now, insurance companies have often left patients without coverage when they needed it most — causing them to delay care, which compromises their health and drives up the cost of care when they finally get it. Too often, insurance companies have put bureaucrats between patients and their doctors, and between patients and the care they need.
“These new protections, part of the Patient Protection and Affordable Care Act we passed into law in March, outlaw some of the most egregious practices of the bad actors in the insurance industry, while providing the stability and flexibility that families need to make the choices that work best for them. These reforms will improve the health coverage that you get through your employer or though an individual health insurance policy purchased directly from an insurer.
“Here is what these protections will mean for you:
“• Up Until Now: Insurance companies were able to retroactively cancel your policy when you because sick or if you or your employer had made an unintentional mistake on your paperwork.
“Under Reform: The new law prohibits insurance plans from rescinding your coverage when you get sick, except in cases of fraud or an intentional misrepresentation of facts.
“• Up Until Now: Over 100 million Americans have been enrolled in insurance plans that impose lifetime limits on coverage — meaning when a catastrophic illness strikes, they were in danger of bankruptcy when their health costs exceed the limit.
“Under Reform: The new law does not allow lifetime limits so families will no longer go broke or lose their home just because a loved one has an accident or becomes ill.
“• Up Until Now: Even more aggressive than lifetime limits are annual dollar limits on what an insurance company will pay for health care. The insurance plans of millions of Americans have had such annual limits.
“Under Reform: The new law phases out the use of annual limits; ensuring that the coverage of hundreds of thousands of Americans will no longer be cut off right when they need it most. This change applies to all employer-based plans and new individual plans.
“• Up Until Now: Most insurance companies did not allow parents to keep their young adult children on their plan while those children worked to finish their education or find jobs.
“Under Reform: The new law requires insurance plans that offer family coverage to allow young people to remain on their parents’ insurance plan up to their 26th birthday.
“• Up Until Now: The NMI’s Medicaid funding was limited to about $5 million per year.
“Under Reform: The Medicaid funding available will jump to nearly $9 million in 2011 and keep increasing to nearly $21 million in 2019 — bringing our total to $158 million over the next ten years.
“All of these provisions take effect for the next plan year starting on or after Sept. 23. That means they will be in effect the next time you re-enroll or purchase a policy from an insurer.
“And these reforms will be expanded over time. For example, starting in 2014, companies will be prohibited from denying coverage for pre-existing conditions.
“The NMI will also be eligible — at the governor’s option — for funding to create an insurance exchange with subsidized premiums for families who do not qualify for Medicaid but cannot afford to pay for health insurance.
“Opponents of health care reform want to repeal this new law and take away these important consumer protections. But I believe the reforms we enacted in the 111th Congress are going to help people in the Northern Mariana Islands, protecting you from harmful insurance practices and ensuring you don’t face bankruptcy when a family member becomes sick. These reforms will help us all stay healthier physically and financially.”
