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States: 'Blindsided' by plan to shift costs of 'uninsurables' to them under ObamaCare
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Leroy N. Soetoro
May 16, 2013, 10:27:19 PM5/16/13
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http://www.foxnews.com/politics/2013/05/04/states-blindsided-by-plan-to-
shift-costs-un-insurable-to-them-under-obamacare/?intcmp=obinsite
Thousands of people with serious medical problems are in danger of losing
coverage under President Obama's health care overhaul because of cost
overruns, state officials say.
At risk is the Pre-Existing Condition Insurance Plan, a transition program
that's become a lifeline for the so-called uninsurables -- people with
serious medical conditions who can't get coverage elsewhere. The program
helps bridge the gap for those patients until next year, when under the
new law insurance companies will be required to accept people regardless
of their medical problems.
In a letter this week to Health and Human Services Secretary Kathleen
Sebelius, state officials said they were "blindsided" and "very
disappointed" by a federal proposal they contend would shift the risk for
cost overruns to states in the waning days of the program. About 100,000
people are currently covered.
"We are concerned about what will become of our high risk members' access
to this decent and affordable coverage," wrote Michael Keough, chairman of
the National Association of State Comprehensive Health Insurance Plans.
States and local nonprofits administer the program in 27 states, and the
federal government runs the remaining plans.
"We fear...catastrophic disruption of coverage for these vulnerable
individuals," added Keough, who runs North Carolina's program. He warned
of "large-scale enrollee terminations at this critical transition time."
The crisis is surfacing at a politically awkward time for the Obama
administration, which is trying to persuade states to embrace a major
expansion of Medicaid under the health care law. One of the main arguments
proponents of the expansion are making is that Washington is a reliable
financial partner.
The root of the problem is that the federal health care law capped
spending on the program at $5 billion, and the money is running out
because the beneficiaries turned out to be costlier to care for than
expected. Advanced heart disease and cancer are common diagnoses for the
group.
Obama did not ask for any additional funding for the program in his latest
budget, and a Republican bid to keep the program going by tapping other
funds in the health care law failed to win support in the House last week.
Brian Cook, a spokesman for the HHS agency overseeing the health care law,
took issue with idea that thousands of people could lose coverage, though
he did not elaborate.
"These actions are part of our careful management of the program to ensure
that there is a seamless transition ... for enrollees, and that funding is
spent appropriately," he said in a written statement.
The administration has given the state-based plans until next Wednesday to
respond to proposed contract terms for the program's remaining seven
months.
Delivered last Friday, the new contract stipulated that states will be
reimbursed "up to a ceiling.
"The `ceiling' part is the issue for us," Keough said in an interview.
"They are shifting the risk from the federal government, for a program
that has experienced huge cost overruns on a per-member basis, to states.
And that's a tall order."
State officials say one likely consequence of the money crunch will be a
cost shift to people in the program, resulting in sudden increases in
premiums and copayments. Many might just drop out, said Keough.
If a state and HHS can't come to an agreement, the federal government will
take over that state's program for the rest of this year. Amie Goldman,
director of the Wisconsin program, said that would be an unneeded and
possibly risky disruption for patients who'll have to change insurance
next year anyway, when the pre-existing conditions plan formally ends.
Goldman said in her state, for example, the University of Wisconsin
hospital isn't part of the federal government's provider network. "My
colleagues in other states have similar concerns about holes in the
network," she said. "I think it puts people at medical risk."
At his news conference this week, Obama acknowledged the rollout of his
health care law wouldn't be perfect. There will be "glitches and bumps" he
said, and his team is committed to working through them. However, it's
unclear how the pre-existing conditions plan could get more money without
the cooperation of Republicans in Congress.
The program got off to a slow start, partly because insurance isn't cheap.
It offers policies at market rates, and that can mean premiums of $500 a
month for someone in their 50s. The first inkling of financial problems
came in February, when HHS announced a freeze on new applications.
The plan was intended only as a stopgap until the law's main push to cover
the uninsured starts next year. Subsidized private insurance will be
available through new state-based markets, as well as an expanded version
of Medicaid for low-income people. At the same time, virtually all
Americans will be required to carry a policy, or pay a fine.
States are free to accept or reject the Medicaid expansion, and the new
problems with the stopgap insurance plan could well have a bearing on
their decisions.
--
Barack Obama, reelected by the dumbest voters in the history of the United
States of America.
Eric Holder, racist black murdering United States Attorney General, still
has his job.
Nancy Pelosi, Democrat criminal, accessory before and after the fact to
improper vetting of Barry Soetoro aka Barack Hussein Obama, a confirmed
felon using SSAN 042-68-4425, belonging to a dead man.
Obama ignored the brutal killing of an American diplomat in Benghazi, then
relieved American military officers who attempted to prevent said murder
in order to cover up his own ineptness.
Obama continues his goal of disarming America while ObamaCare increases
insurance premiums 200% and leaves millions without health care.
Obama helped bankrupt Illinois. Democrat run Chicago closes 54 public
schools.
--- news://freenews.netfront.net/ - complaints: ne...@netfront.net ---
shift-costs-un-insurable-to-them-under-obamacare/?intcmp=obinsite
Thousands of people with serious medical problems are in danger of losing
coverage under President Obama's health care overhaul because of cost
overruns, state officials say.
At risk is the Pre-Existing Condition Insurance Plan, a transition program
that's become a lifeline for the so-called uninsurables -- people with
serious medical conditions who can't get coverage elsewhere. The program
helps bridge the gap for those patients until next year, when under the
new law insurance companies will be required to accept people regardless
of their medical problems.
In a letter this week to Health and Human Services Secretary Kathleen
Sebelius, state officials said they were "blindsided" and "very
disappointed" by a federal proposal they contend would shift the risk for
cost overruns to states in the waning days of the program. About 100,000
people are currently covered.
"We are concerned about what will become of our high risk members' access
to this decent and affordable coverage," wrote Michael Keough, chairman of
the National Association of State Comprehensive Health Insurance Plans.
States and local nonprofits administer the program in 27 states, and the
federal government runs the remaining plans.
"We fear...catastrophic disruption of coverage for these vulnerable
individuals," added Keough, who runs North Carolina's program. He warned
of "large-scale enrollee terminations at this critical transition time."
The crisis is surfacing at a politically awkward time for the Obama
administration, which is trying to persuade states to embrace a major
expansion of Medicaid under the health care law. One of the main arguments
proponents of the expansion are making is that Washington is a reliable
financial partner.
The root of the problem is that the federal health care law capped
spending on the program at $5 billion, and the money is running out
because the beneficiaries turned out to be costlier to care for than
expected. Advanced heart disease and cancer are common diagnoses for the
group.
Obama did not ask for any additional funding for the program in his latest
budget, and a Republican bid to keep the program going by tapping other
funds in the health care law failed to win support in the House last week.
Brian Cook, a spokesman for the HHS agency overseeing the health care law,
took issue with idea that thousands of people could lose coverage, though
he did not elaborate.
"These actions are part of our careful management of the program to ensure
that there is a seamless transition ... for enrollees, and that funding is
spent appropriately," he said in a written statement.
The administration has given the state-based plans until next Wednesday to
respond to proposed contract terms for the program's remaining seven
months.
Delivered last Friday, the new contract stipulated that states will be
reimbursed "up to a ceiling.
"The `ceiling' part is the issue for us," Keough said in an interview.
"They are shifting the risk from the federal government, for a program
that has experienced huge cost overruns on a per-member basis, to states.
And that's a tall order."
State officials say one likely consequence of the money crunch will be a
cost shift to people in the program, resulting in sudden increases in
premiums and copayments. Many might just drop out, said Keough.
If a state and HHS can't come to an agreement, the federal government will
take over that state's program for the rest of this year. Amie Goldman,
director of the Wisconsin program, said that would be an unneeded and
possibly risky disruption for patients who'll have to change insurance
next year anyway, when the pre-existing conditions plan formally ends.
Goldman said in her state, for example, the University of Wisconsin
hospital isn't part of the federal government's provider network. "My
colleagues in other states have similar concerns about holes in the
network," she said. "I think it puts people at medical risk."
At his news conference this week, Obama acknowledged the rollout of his
health care law wouldn't be perfect. There will be "glitches and bumps" he
said, and his team is committed to working through them. However, it's
unclear how the pre-existing conditions plan could get more money without
the cooperation of Republicans in Congress.
The program got off to a slow start, partly because insurance isn't cheap.
It offers policies at market rates, and that can mean premiums of $500 a
month for someone in their 50s. The first inkling of financial problems
came in February, when HHS announced a freeze on new applications.
The plan was intended only as a stopgap until the law's main push to cover
the uninsured starts next year. Subsidized private insurance will be
available through new state-based markets, as well as an expanded version
of Medicaid for low-income people. At the same time, virtually all
Americans will be required to carry a policy, or pay a fine.
States are free to accept or reject the Medicaid expansion, and the new
problems with the stopgap insurance plan could well have a bearing on
their decisions.
--
Barack Obama, reelected by the dumbest voters in the history of the United
States of America.
Eric Holder, racist black murdering United States Attorney General, still
has his job.
Nancy Pelosi, Democrat criminal, accessory before and after the fact to
improper vetting of Barry Soetoro aka Barack Hussein Obama, a confirmed
felon using SSAN 042-68-4425, belonging to a dead man.
Obama ignored the brutal killing of an American diplomat in Benghazi, then
relieved American military officers who attempted to prevent said murder
in order to cover up his own ineptness.
Obama continues his goal of disarming America while ObamaCare increases
insurance premiums 200% and leaves millions without health care.
Obama helped bankrupt Illinois. Democrat run Chicago closes 54 public
schools.
--- news://freenews.netfront.net/ - complaints: ne...@netfront.net ---
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