The much-publicized health bill has finally been passed, a ground-breaking initiative that, while costing an estimated $940 billion dollars over the next 10 years, will not add to the national deficit or adversely affect taxpayers. At last, I can now start scheduling annual check-ups and have a dentist look at that tooth I chipped back in freshman year, right?
Wrong.
As a financially challenged college student, one of my main concerns is paying bills. Paying bills for food, shelter, and perhaps most importantly, my education. Any new legislation passed that helps me shuffle the balance of my checking account between fewer destinations is enough to make me sit up and take notice. After examining the fine print of Obama’s health bill, I was rather disappointed. While it can’t be denied that this bill signals the beginning of what looks to be a long and contentious battle toward health equality for all Americans, let’s not get too excited too early.
According to healthreform.gov, the provisions that will take effect immediately are as follows: Tax credits will be offered to small businesses in order to make employee coverage more affordable. Retirees between the ages of 55 and 64 (and their employers) will be subsidized to cover the increased costs for high-risk patients. Access to affordable insurance is promised for Americans who are uninsured because of a pre-existing condition through a temporary subsidized high-risk pool. A $250 rebate will be provided to Medicare beneficiaries who hit the so-called “donut hole,” the difference of the initial coverage limit and the catastrophic coverage threshold in 2010; and aid will be given to states to help in establishing offices of health insurance consumer assistance, allowing individuals filing complaints and appeals to do so with ease.
Well that looks really good on paper, but how does it help me, your average college student? I don’t have the honor of having a pre-existing condition, unless you count the old aches and pains from high school athletics, and I’m not on Medicare or over 55. I called LifeWise, my family’s old provider, and inquired about changes in monthly payments. Much to my surprise, they hadn’t dropped. At all. I was told that under the new health care umbrella, I could stay on my parents plan until I’m 26. That would be awesome, except that my family was forced to give up our insurance two years ago.
Truth be told, very little of the immediate “change” that will happen in the cutthroat business of health insurance this year will actually help the vast majority of uninsured Americans. Health insurance may be becoming safer and more reliable, but it isn’t getting any cheaper — at least not right away.
A much more interesting development, to my wallet at least, is the governmental takeover of student loan lending also through the passing of the Health Care and Education Reconciliation Act. This new piece of legislation, which has had almost no publicity, allows the government to issue student loans directly to us students without going through those ruthless revenue-making machines: banks and financial institutions.
Funding for this new act tops out at a generous $68 billion over the next 11 years, promising enormous potential aid to students like you and me. How exactly does this legislation propose to help students? By removing the middle man, student loans can be offered at lower interest rates without the need to turn a profit. It allows students to pay off their dues at a reasonable rate, which is 10 percent of their post-college income, and forgives debt after a 20 year period if payments have been made regularly. In addition, $40 billion goes straight into Pell Grant awards, meaning more students will be eligible and the funds they receive will be greater.
Of course, banks like Sallie Mae, traditionally a student loan-type lender, are opposed to this new strategy for educating America’s masses. More students getting better financial packages without losing a pound or three of flesh? Unheard of! For too long, college students have been the proverbial cash cow for these banking giants. Finally, someone is willing to step on some toes and give us a fair shake at bettering ourselves without having to drown in a broiling torrent of debt.
As far as I’m concerned, the passing of the health bill is merely the fulfillment of a campaign promise. Thanks to a relatively minor piece of legislature, the real “change” is happening in my University financial aid package.
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