New healthcare legislation is about to change significantly the landscape of rising costs and competing health insurance plans. Unfortunately, many people fail understanding these changes and the immediate result that will be experienced.

Healthcare legislation affects insurances and their availability in a number of ways. These are the most important effects that need to be mentioned.

People with preexisting medical conditions are the ones that will benefit mostly from the new health bill. This applies both to children and adult who are already suffering from some medical problem.

Until now, these people had difficulties finding a health insurance plan due to the rising costs of such policies. Insurance companies, however, are no longer to deny children with preexisting medical conditions coverage.

Adults who suffer from a medical problem will benefit from a plan that decreases the cost of health insurance plans.

Insurance companies are now banned from dropping a client, once the person gets sick. This used to be a very common strategy, giving insurers a chance to minimize expenditure and to leave high risk clients without coverage.

The new health bill is also putting significant emphasis on prevention and wellness. All insurance companies will be required to begin offering preventive practices in their plans. This is a very important step forward, since until recently medical legislation was concerned mostly with the treatment of already existing conditions.

Parents are now given the chance to keep children on their insurance plan. The age limit for that provision has been extended. Children can stay on the same insurance plan as a parent until they turn 26. This way, young individuals who lack an insurance policy will get access to healthcare.

New legislation is also to penalize individuals who have no health insurance yet. This change will become effective in 2014. People who lack the financial resources needed to get health insurance will receive governmental assistance.

The new bill is also addressing issues like transparency and the availability of information. Exchanges or state operated insurance market places are to be established in 2014, as well. These will be designed to grant policy seekers access to a bigger number of options.

Families that are experiencing financial limitations will be eligible for financial aid that can be used for the purchase of an insurance policy through the state exchange.

Many of the innovations that new healthcare legislation is planning will become effective only in 2014. This fact makes it difficult to assess the manner in which new regulations will affect the insurance market. One thing is certain; these innovations are designed to give customers more option and to increase transparency. Whether these goals will be accomplished is yet to be seen.