This long-awaited and much-heralded, (or maligned-depending on your perspective), stimulus bill was signed into law in February by President Barack Obama, and it’s still unclear exactly what the bill will do for our struggling economy. Although I’ll avoid the political fray, I did want to let Local Eye Site readers in eye care know about a couple of specific items that have bottom line implications for ’09-’10.
First of all, the stimulus plan does extend medical care to more people. COBRA benefits have been increased to those who have been or currently are unemployed, especially if they lost their job after September 1, 2008. This plan lends a lifeline to those who are struggling to make ends meet and cover their health care costs. Starting in March, the stimulus plan subsidizes COBRA health care plans at a 65% rate, thus the insured must only pay 35%. Also, if laid off workers refused the COBRA plan back at the time of their layoff, they can sign up now without penalties to receive this 65% assistance.
This extra COBRA coverage will last for nine months, a welcome relief to thousands of families who could not otherwise afford their payments. I realize this is a headache from the perspective of an employer, however, overall I think it is good news for the medical profession. As the number of insureds increases, so does the number of people willing to move forward with eye or other medical procedures that otherwise may have been put-off. It goes without saying that this will not only have a financial impact on the bottom line of eye care practices, but the general healthcare of our country. Good timing considering it comes in the midst of one of the most stressful times in their lives.
And secondly, medical professionals will see the benefits of this package in their efforts to upgrade and convert their medical practices to keep up with changing technology and best practices. For instance, the Electronic Medical Records (EMR) transition (which many of you may have been dreading or are preparing to begin soon) will be helped by the stimulus plan. There has been allocated $17.9 billion dollars to help doctors with 30 percent Medicaid patients, who will receive a bonus of up to 85 percent of their costs for the EMR transition. Hospitals with 10 percent Medicaid clients will receive a bonus that has yet to be calculated. A similar plan would apply to providers to Medicare, the insurance program for the elderly.
As we’ve seen in the past few months, consumers are tightening their spending habits, perhaps putting on hold elective procedures, or losing their vision coverage altogether. Clearly, this has an effect on the business of eye care. Like it or not, the spending packaging and its inclusion of these specific issues central to the health care and medical profession will have some level of stimulating affect for the eye care profession. All in all, no matter how the stimulus shakes out, medical professionals have definite benefits to consider in the coming week and months.
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