1st stage of health provisions to start

July 6, 2010 at 12:00a.m.

Associated Press

WASHINGTON

The first stage of President Barack Obama’s health-care overhaul is expected to provide coverage to about 1 million uninsured Americans by next year, according to government estimates.

That’s a small share of the uninsured, but in a shaky economy, experts say it’s notable.

Many others — more than 100 million people — are getting new benefits that improve their coverage.

Overall costs appear modest at this point, split among taxpayers, employers and individuals who directly benefit, although the biggest part of the health-care expansion is four years away.

For weeks, the White House has been touting the new law’s initial benefit changes, even as Obama dares Republicans to make good on their threat to repeal his signature social policy achievement. Now, a clearer picture is starting to emerge from the patchwork of press releases.

In 2014, government tax credits will help uninsured workers and their families pay premiums, and Medicaid will take in many more low-income people. Eventually, more than 30 million will gain coverage, sharply reducing the number of uninsured and putting the nation on a path to coverage for all citizens and legal immigrants.

Among the beneficiaries will be many people locked out of insurance because of medical problems.

The major early coverage benefits include:

Allowing young adults to stay on their parents’ coverage until they turn 26. In 2011, an estimated 650,000 young people who would otherwise have been uninsured will gain coverage. Another 600,000 will benefit by switching from individually purchased policies to less costly, more comprehensive employer plans. The number with coverage will grow in 2012 and 2013.

A health plan for uninsured people with pre-existing health conditions. From 200,000 to 400,000 could benefit in 2011, according to the Congressional Budget Office.

Ending lifetime limits on coverage, and restricting annual limits.

Requiring insurers to cover children with medical problems. About 51,000 uninsured children are expected to gain coverage.

Many Americans covered through employers won’t see the changes until Jan. 1. That means 2011 will be the first year that the early benefits are fully in place.