U.S. Health Insurance Policy Laws
- Health insurance policy laws help protect U.S. citizens.health centre sign. access to health centre image by L. Shat from Fotolia.com
The United States government has passed several laws and has agencies dedicated to protecting citizens from insurance fraud and other illegal insurance practices. Some insurance companies have been accused of skimping on coverage when their clients are in need of medical procedures or attention and the U.S. government seeks to prevent that. The U.S. Department of Health and Human Services has implemented a privacy rule that protects the private information of insurance company clients, and the U.S. Department of Labor has a plan in place to extend group health coverage. - The Patient Safety and Quality Improvement Act of 2005 (PSQIA) was implemented by the U.S. Department of Health and Human Services and created to improve and resolve patient safety and health care problems as well as to protect patient's private information. The Act created a report center in which individuals could file claims of violations of patient confidentiality by insurance companies and treatment centers. The law also allows the Department of Health and Human Services to monitor confidentiality agreements between insurance companies, treatment centers, employers and patients. This system allows the agency to quickly locate instances of violations in patient confidentiality and to impose penalties.
- In 1986, Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA.) This law allows for the extension of group health coverage, which would have otherwise be eliminated. COBRA allows certain employees, retirees, spouses and children to temporarily continue group health coverage. The rates for group coverage are generally less expensive than individual coverage, which is a big advantage. Individuals and groups can enroll in COBRA if their previous insurance plan was lost to specific events, such as family tragedy, illness, or job loss.
- For employees to qualify for COBRA, they must have been either voluntarily or involuntarily removed from employment for reasons other than gross misconduct or have had their work hours reduced. For spouses to qualify for COBRA, they may have had their employment terminated for reasons other than gross misconduct. The spouse may also have had their employment hours reduced, become eligible to receive Medicare supplies, become divorced, or have a deceased spouse. Children can qualify for COBRA if the child was dropped from a previous insurance plan, have a deceased member of their immediate family or are being raised by a divorced parent.
