Posts Tagged - ‘healthcare reform’

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Healthcare Reform Lawsuit Arguments Continue

Tuesday, August 31st, 2010
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Image: steakpinball under CC 3.0

When it comes to healthcare reform, controversy is never far behind. The federal government has continued to argue that the law is constitutional. In a district court, their lawyers claim that the burden of proof should be on the coalition of states suing.

Specifically, the states claim harm from the provision that mandates the purchase of health insurance plans. If a person or business does not comply, they are subject to annual fines of $695. However, the plaintiffs have allegedly failed to demonstrate imminent or actual financial injury, since that aspect of the legislation does not take effect until 2014.

Moreover, the federal government claims that even if the penalty (which would be collected by the IRS) is technically considered a tax, the Anti-Injunction Act prevents states from challenging it, since the individual mandate is considered integral to the structure of the bill.

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Colorado To Vote On Health Insurance Plan Mandate

Saturday, August 28th, 2010
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Image: Paraflyer under CC 3.0

Like several other states, Colorado will have a healthcare reform-related question on the November ballot. Voters will be able to decide whether or not they want to legally challenge provisions of the law.

Similar to other states’ ballot measures, it would pass a law that prevents the federal government from enacting a health insurance plan mandate–one of the main provisions of the bill, intended to reduce the cost of health insurance by spreading the cost among more (typically healthy) people.

It remains to be seen if Amendment 63 is successful. Even if it passes, the federal law may still dominate state law. However, conservative groups are happy that the Colorado health insurance measure received enough signatures to reach the ballot.

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Health Insurance Plan Agents May Suffer Under Reform

Friday, August 27th, 2010
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Image: Jennifer Feuchter under CC 3.0

Although healthcare reform tries to help many, it will end up hurting at least some. For example, the business model of many health insurance brokerages and agencies is in danger.

Provisions involving medical loss ratios, which include agent commissions in the “administrative” category that will be regulated and limited, will have a negative effect. In addition, brokerages may be made redundant by the state insurance exchanges and accompanying websites that must be launched by 2014. On the bright side for them, the National Association of Insurance Commissioners passed a resolution that affirmed the importance of licensed insurance professionals.

With the possibility of a double-dip recession looming, more job losses is obviously a downside. However, industry experts predict that these companies have several options for adaptation. Hopefully, their experience in navigating the complexity of the market and helping people decide on a health insurance plan will still be in demand. Their compensation model may also be adjusted in favor of flat fees instead of commissions.

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Republicans Vow To Repeal Healthcare Reform If They Win Midterms

Friday, August 20th, 2010

Image: Republican Party of Shelby County under CC 3.0

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The heated midterm election battles are underway. Control of the House of Representatives and Senate is at stake in November. Democrats are looking to retain their majority, but what if they don’t?

Tennessee Republican representative Marsha Blackburn recently stated that the GOP will repeal the Obama administration’s healthcare reform law if they regain control. The law is controversial largely due to provisions that create a mandate for individuals and companies to buy a health insurance plan.

However, Rep. Blackburn’s promises may be more election rhetoric than reality. While the Republican party may take a few steps in the direction of eliminating the law, President Obama is guaranteed to veto any bill that would repeal it. Although political pundits predict that Republicans may win a significant number of seats, they may not reach the essential two-thirds of the Senate that would be necessary to override a presidential veto.

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Rate Hikes for Health Insurance Plans Requested in North Carolina

Thursday, August 19th, 2010
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In North Carolina, Blue Cross Blue Shield has asked to increase the monthly premiums of its health insurance plans by an average of 7 percent.

However, the rate hikes aren’t across the board. Some of the 300,000 individual health insurance customers in the state may actually end up saving money through cheaper rates, while a handful of others will experience severe premium jumps of 40 or 50 percent.

The insurer blames rising medical costs for the increase, and says that it would have been even higher without the limitations imposed by healthcare reform. It remains to be seen if the state will approve their proposal.

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Statistics About Massachusetts’ Uninsured

Wednesday, August 18th, 2010
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Image: David Paul Ohmer under CC 3.0

Largely due to the state’s first-in-the-nation healthcare reform, Massachusetts residents are the most likely in America to have a health insurance plan. Still, the expansion has not succeeded in providing universal coverage. Why?

A recent study from the Urban Institute and the Robert Wood Johnson Foundation’s State Access Reform Evaluation looked to identify the 4.1 percent who were still uninsured.

Here are their findings on the average Massachusetts resident without health insurance:

  • From 19 to 64 years old
  • male
  • an ethnic or racial minority (African-American, Hispanic, etc.)
  • unmarried
  • lack of proficency in the English language; either their own or that of an adult who lives with them
  • less educated
  • not a U.S. citizen
  • more likely to be unemployed
  • could be eligible for public Medicaid coverage

The study’s authors believe that the state’s message may not be getting across to its attempted demographic. Suggestions include rewriting the program information in order for it to be understandable with a 4th to 8th grade reading level.

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States Receive Grants To Implement Healthcare Reform

Tuesday, August 17th, 2010
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Image: Aaron Esterling under CC 3.0

Affordable health insurance reform requires states to take the lead in regulating insurers. Many of them do not have the infrastructure or legal authority to do so. That is where $46 million in federal grants come in.

All but a handful of states, as well as the District of Columbia, will receive $1 million each for actions such as hiring actuaries to investigate rate increases and developing data systems for health insurance rate filings.

Which states are the holdouts? The following didn’t apply for the Department of Health and Human Services’ grant:

  • Georgia
  • Iowa
  • Alaska
  • Wyoming
  • Minnesota
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Will States Be Able To Implement Health Insurance Plan Reform?

Monday, August 16th, 2010

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Image: tomcensani under CC 3.0

Although healthcare reform will result in more federal involvement in regulations, the majority of the responsibility for regulating health coverage will still rest with the states.

However, it seems that many state insurance commissioners don’t have the power to do some of the things the Obama administration wants them to. Almost half of the states claim that they don’t have the legal authority to review health insurance plan rate increases, for example.

What are they doing to make sure that they can effectively enforce some of the consumer protection provisions that begin next month? States such as Florida and Texas have little recourse, except for gently encouraging health insurers to modify their contracts in order to comply with federal law. Regulators are planning on new state laws being passed in the next year, or using general laws against deceptive trade practices. It remains to be seen if these tactics will be successful. If they are unable to take the lead, the national government will step in–an unpalatable alternative to many.

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Yet Another Affordable Health Insurance Reform Lawsuit

Saturday, August 14th, 2010
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Image: Wikipedia

This time, a conservative group from Arizona is suing the Obama administration over healthcare reform. The Goldwater Institute, which filed the lawsuit, believes that while the issue of increasing access to affordable health insurance is important, the federal law is too heavy-handed.

They are representing a variety of interests, including Republican politicians on both state and local levels, as well as a small business owner. In addition to the belief that they will be forced to purchase a health insurance plan they don’t want (when, in their view, the Constitution delegates health care policy decisions to the states), the plaintiffs also fear that the legislation violates privacy rights.

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Massachusetts Man Doesn’t Buy Health Insurance Plan, Sues Govt.

Thursday, August 12th, 2010
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Image: WorldIslandInfo.com under CC 3.0

This may be a sign of things to come: a man who defied Massachusetts’ individual mandate by not buying a health insurance plan is contesting his $2,000 fine in court. He already tried the formal appeals process to get the fine reversed, but to no avail.

Michael Merlina claims that the $800 monthly premium for him and his wife under the Massachusetts Health Insurance Connector’s most affordable option was too expensive. Meanwhile, the couple’s combined income wasn’t low enough to qualify for heavily discounted state health care for the poor.

National healthcare reform will phase in a similar requirement in 2014. It includes elements of–but differs from–the Massachusetts model. It remains to be seen if it will have a similar impact for those caught between the cracks.

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