Posts Tagged - ‘healthcare reform’

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Oklahoma Passes Ban On Health Insurance Plan Mandate

Monday, November 8th, 2010

Image: KB35 under CC 3.0

The big story involving last week’s elections is the resurgence of Republicans; they took over the House, and made up lost ground in the Senate. That will surely impact several policy priorities, including healthcare reform repeal.

Voters in Oklahoma also spoke out by passing an amendment to their state constitution that prohibits the federal government from forcing residents to purchase a health insurance plan, in response to the unpopular mandate provision.

Two thirds of voters in the state sent a message that the Obama administration should not become involved in Oklahoma health insurance matters. However, the amendment will probably have little actual impact on the federal government’s actions.

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IRS’ Affordable Health Insurance Reform Implementation in Danger

Wednesday, October 27th, 2010

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Understandably, most people aren’t huge fans of the IRS. For the most part, Americans communicate with them when they’re taking money out of their pockets during tax season. However, a provision of the new healthcare reform law has the Internal Revenue Service actually attempting to give money back!

The law is meant to make affordable health insurance more widely available through tax credits to small businesses that provide coverage to their employees. Doing so will require more manpower and resources for implementation and enforcement of the program. Some Republican candidates are considering defunding the IRS and other agencies involved to stifle healthcare reform, since it is predicted to take $5 to $10 billion for each agency to fully implement it.

Congress has the power to do so, and does not require President Obama to sign off on a repeal he would be guaranteed to veto. Ironically, one of the most business-friendly provisions may suffer as a result.

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Athletes Struggle To Find a Health Insurance Plan

Tuesday, October 26th, 2010

Image: Studio Finch under CC 3.0

Intuitively, most marathon runners and other serious athletes would be a good bet for health insurance plan providers. They are extremely fit, making them less likely to develop chronic health conditions like diabetes. On the other hand, they are actively working towards better health.

However, there’s a catch in that model of an ideal investment: injuries. So far, health insurers have reserved the right to deny coverage based on pre-existing conditions, and a severe injury or accident could qualify. Either the policy will cover everything except treatment related to the injury, or they will be denied a policy altogether. (The healthcare reform law looks to end this in 2014.) In addition, even minor sprains or other injuries require doctor’s and hospital visits, driving up health insurance costs.

On the bright side, many distance runners buying individual health plans tend to be on the young side, making their coverage cost less.

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State Health Insurance Commissioners To Rule on Medical Loss Ratios

Thursday, October 21st, 2010

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All eyes are on Orlando today, but not because of anything Mickey Mouse has done. Rather, it is a meeting of several states’ insurance commissioners. Their topic: coming up with the rules that insurers will have to abide by post-healthcare reform.

Specifically, they are responsible for calculating minimum medical loss ratios. MLRs are also known as the percentage of premiums spent on providing health care, as opposed to profits and administrative expenses. Proponents of the limits believe that they will result in more affordable health insurance for consumers. However, some are worried that the new rules will make some niches and entire markets–such as small groups–less appealing, and that people will become uninsured as a result.

The group’s recommendations will become effective next year. Although the already-determined limits are 85% for large group plans and 80% for small groups and individuals, the commissioners will consider tax exemptions and a longer phasing-in period. Most significantly, they will help determine what counts as a medical expense. Insurers obviously want a wider definition of qualified medical costs.

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Boeing’s Health Insurance Plans Becoming Less Attractive To Employees

Wednesday, October 20th, 2010

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In order to combat continually rising health care costs, many companies are changing their benefits packages to transfer more of the expense onto employees. Boeing is no different.

According to human resources senior VP Rick Stephens, co-payments, co-insurance percentages, and deductibles will go up next year. One of their health insurance plans will have its co-insurance percentages soar to 20% from 10% in 2012. About 90,000 employees will be affected.

Union employees are exempt, because they have their own negotiated contract. Many are speculating that the healthcare reform law has something to do with it, which the aircraft manufacturer denies.

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Virginia Judge To Rule on Health Insurance Mandate on New Year’s Day

Tuesday, October 19th, 2010

Image: USA Today

Those hoping for a quick resolution to the lawsuits seeking to overturn a portion of the Obama administration’s healthcare reform law are out of luck. At least one of the suits–the one filed by Virginia–will take longer to resolve. According to U.S. District Court Judge Henry E. Hudson, he will rule on whether the affordable health insurance mandate provision is constitutional on January 1st.

If Hudson determines that the state’s Attorney General Ken Cuccinelli II has a case for the federal government overstepping its boundaries, the challenge will be one step closer to the Supreme Court. Since Virginia has its own specific law forbidding anyone from mandating that its residents purchase health insurance, it filed a lawsuit separate from the class action joined by over 20 states.

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McDonalds, Other Businesses Exempt from Healthcare Reform Law

Monday, October 18th, 2010

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There has been much concern surrounding healthcare reform’s impact on businesses. Many are worried that employers will drop their health insurance plans altogether, rather than complying with new requirements that increase the standard of care.

However, 30 companies and unions–McDonalds is the most popular–have received an exemption from that provision. The waiver must be renewed by Secretary of Health and Human Services Kathleen Sebelius each year until 2014. HHS made the judgment that rather than risking companies discontinuing seasonal and temporary workers’ health coverage entirely, it makes more sense to allow them to retain the inferior mini-med plans with extremely low annual limits of coverage. This will be the case for several years, until the health insurance exchanges are fully operational to give such employees more options.

Other firms are protesting this move, because small businesses will suffer while the big names with lobbying influence can get around the unfavorable provision.

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Will Student Health Insurance Survive?

Tuesday, October 12th, 2010

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The shape of health insurance plans is set to change due to healthcare reform. Health coverage for students is no different.

Colleges and universities all over the country are waiting with bated breath for new guidelines from the Department of Health and Human Services. They want to ensure that their offerings meet the minimum standard for adequate coverage as “Bronze Plans”. If not, such plans are in danger of disappearing: students with employed parents can stay on their health insurance until age 26, while others can buy coverage through the newly-created health insurance exchange markets.

Student health insurance is often maligned for charging high rates for inferior coverage–especially nonsensical given the generally young and healthy population. Moreover, many campuses have their own mandates.

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Michigan Judge Says Health Insurance Reform is Constitutional

Monday, October 11th, 2010

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Opponents of healthcare reform are pinning their hopes of overturning the law on the legal system. Specifically, they contend that the individual mandate provision that requires people to purchase a health insurance plan violates states’ rights.

That argument was recently rejected by one federal judge. In Michigan, U.S. District Judge George Sheeh accepted the Obama administration’s contention that the refusal to buy health coverage materially affects interstate commerce; therefore, Congress has the right to create the mandate.

Of course, the plaintiffs will appeal. Also, two other similar lawsuits are pending in Florida and Virginia–which may be in more conservative districts.

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