Effective date of health reform laws

The implementation of the Patient Protection and Affordable Care Act of 2010 will be phased-in to prevent a shock to consumers and the health insurance market. The first reforms become effective Sept. 23, 2010. Although this batch of changes are relatively minor and affect only a few individuals who may apply for new insurance, we are currently focused on deciphering and implementing these specific provisions for debut in less than 6 months' time. These changes include the guaranteed eligibility of children who apply for new health insurance and the inability of insurance companies to rescind insurance coverage unless a fraudulent statement was made on the application. This column will cover each of these reform provisions individually as details become available.

For those covered by employer-provided group health insurance, these reforms become effective when the insurance policy renews - January 1, 2011 for many group insurance plans.

The majority of the substantive changes do not become effective before 2014 and the details will likely change before that date so these reforms are not further addressed here.

It is also important to realize that some of the reforms do not affect current insurance policies at all and are only effective for new insurance plans issued on or after Sept. 23, 2010. This allows those with insurance to keep their current health plan and provides a window of opportunity for some to lock in lower priced coverage before the effects of the reform laws pushed rates higher. Also, some policies are exempt from the reform provisions including supplemental insurance, short term and travel policies and income replacement insurance policies .

The effects of the near-term provisions will be manageable for most consumers although insurance prices will rise more sharply than in the past. But by the end of 2014 insurance analysts expect that the average rate of a new plan that meets the reform provisions will be double the cost of current health insurance.