Key health care reform provisions go into effect Posted: January 4th, 2011

The landmark Patient Protection and Affordable Care Act makes significant changes to the United States health care system. While the first reforms were rolled out in 2010, a second wave of changes recently went into effect.

As of Jan. 1, the following components of the health reform law were enacted:

Medicare prescription drug discounts: Seniors purchasing prescriptions in the Medicare Part D prescription drug 'donut hole' will receive a 50 percent discount on certain brand name drugs.

Medical loss ratios: Health insurance companies are required to spend 80 percent to 85 percent of premium payments on direct health care costs. However, more than 200 companies operating 'mini-med' health plans have received waivers for this provision.

Free preventive services for seniors: Original Medicare and Medicare Advantage plans are prohibited from charging deductibles or co-payments on certain preventive care services such as cancer screenings.

Flexible Spending Account changes: The new law prohibits individuals from receiving reimbursement from their Flexible Spending Account for over-the-counter medications unless prescribed by a doctor.

Medicare reimbursement bonuses: Physicians providing primary care services and surgeons working in areas designated as having a health professional shortage will receive a 10 percent Medicare bonus payment.

Wellness program grants: Small businesses offering employee wellness programs may be eligible for grants to offset program costs.