Health reform is upon us, and even those people who have been following the topic closely might be unclear on a few items. Health care can be broken down so we can all understand what it is since it’s so important to each of our families. It is crucial to work with a company that has employees who know the facts and can shed light on the items you may be questioning. The company you choose may be Chastain Otis Insurance & Financial Services.

Chastain Otis, which is located at 9394 West Dodge Road, Suite 150, has been assisting people with their financial and insurance needs for decades. Dave Chastain, CPCU, CLU, and president, says that many people have asked him what options will be the best fit for their families. “We are able to take simple information like the age of a client, zip code, and number of children, and easily let them know the various costs of services available to them,” says Dave. “It is a very easy way to learn and find out what is the best thing for you.”

Although the rules for the new health care reform law are still being written, there is some basic information available on what is included in the Patient Protection and Affordable Care Act. According to Becky Janda, a financial services agent at Chastain Otis, there are things that individuals and business owners should be aware of now. They should also know that there are numerous changes that will occur in the next four years.

In 2010, for example, if your small business offers coverage to employees and your employees’ average wage is less than $50,000 a year, you may be eligible for a tax credit to help with the cost of coverage, even if you don’t owe taxes, he explains.

The new law provides enhanced coverage for preventive services as well. Dave says that this means the benefits for prevention will be covered at 100% with no deductible. This benefit applies to most but not all plans. The exact benefits that must be covered will be announced soon. Becky points out that if your plan is “grandfathered,” which means it is exactly the same as it was before the bill was enacted on March 23, 2010, the new preventive benefit provisions will not apply until 2014.

You may have heard that some of your benefits may be improving because of the new law. Starting as early as September 23, 2010, a number of new benefits will be required on all health plans. According to Dave, one new benefit is that the overall limits on the benefits that can be paid for eligible expenses on your health plan, as well as the limit on how much can be paid each year, will be eliminated. If, for example, your plan limited prescription drugs to $1,000 per year in the past, that limit will go away. However, medical services still have to be medically necessary before they will be covered by your policy.

Becky shares that another new benefit is that if you cover dependents on your health plan, they can be covered until the age of 26, even if they are not full-time students and if they are married. Becky says that many people are looking forward to this benefit, but have questions about what it might mean for children who may be coming off of their policies before September. According to Becky, guidance from the U.S. Department of Health and Human Services is coming soon to answer questions and clarify facts about this benefit.

Dave points out that although these new benefits may be beneficial, there may also be costs associated with them. We don’t have a choice on these costs because they are now required to be included in all health coverage. Dave suggests that you discuss questions with a health insurance agent or broker in your area. You can also go to the National Association of Health Underwriters at www.nahu.org, and click on “Find an agent” to be connected to a professional for guidance.

When it comes to changes in 2011, Dave says one change is that if you have a Health Care Savings Account and you withdraw funds for non-medical reasons, your penalty will be larger. The cost for using Health Savings Account funds on non-medical expenses will now be taxable income to you, as well as a 20% fine. If you have a Health Savings Account or an employer-sponsored FSA or HRA, you no longer will be able to turn in expenses for over-the-counter medications unless you have a prescription.

The year of 2014 will bring the biggest changes, whether you are an individual buying coverage on your own, or you are a small business owner (up to 100 employees) buying coverage for your employees. Many rules will be different than they are today. According to Dave, beginning in 2014, health insurance companies can’t turn anyone down for insurance coverage or ask any questions about their health at the time they apply for coverage.

There will also be a new market for health insurance in each state in addition to the providers of coverage that we have today. Dave says that these new markets will be called “exchanges.” If a person doesn’t have employer-sponsored coverage, he may be eligible for a subsidy to help pay for the cost of coverage and sometimes an increased level of benefits with lower deductibles and copays. Dave points out that these benefits sound nice, but you should be aware that they may increase the cost of coverage. They are not optional, as all plans are required to have them. Whether they result in a cost increase for you or your employees will depend on your individual situation. Your agent or broker can help you determine what the most cost-effective option is for you and your state.

Becky points out that there will be a variety of taxes that will go into effect between now and 2014, and that may increase tax liability for certain individuals or increase the cost of your health plan. Now is the perfect time to speak with your provider and get your questions answered. For more information about Chastain Otis Insurance & Financial Services, call 384-2539 or visit the Web site at www.chastainotis.com.