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Problems With Health Care Law Mean Greater Payments to Insurers

Problems With Health Care Law Mean Greater Payments to Insurers
White House Offers Bailouts, Lenience on Subsidy Payments

(Washington, D.C.) – The many problems with implementation of the Affordable Care Act (ACA), also called Obamacare, have led the Administration to reluctantly make a series of last minute changes in how the law takes effect. The employer mandate and the Small Business exchange have been delayed for a year. Provisions that discontinued millions of existing plans have been suspended – but too late for many of those plans to actually be reinstated. The Spanish-language enrollment site has been indefinitely delayed. Deadlines for purchasing insurance have been extended (although the penalty for individuals who do not buy insurance has not.) As a result of these problems and changes, insurers are increasingly concerned that system will fail as sicker and more costly patients enroll, but young and healthy patients do not. To address these concerns, the Administration has made it easier for insurance companies to access taxpayer dollars and receive a bailout under the law.
Separately, continuing problems with the Healthcare.gov website have made it impossible to determine whether insurance purchasers qualify for subsidies, or how much any subsidies should be. Furthermore, no mechanism has been built to make those payments to insurers. Therefore the Department of Health and Human Services has announced that for a temporary period, they will pay insurance companies based on the companies' estimate of what they are entitled to. Once the system is built, the Administration promises to "true up" the payments. It is not clear when this will occur, or how much this could ultimately cost taxpayers.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"America's health care system was not perfect, and was in need of improvement. While many people liked their plans and were satisfied with their doctors, some had a hard time finding the care they needed. Unfortunately, the President's health care reform law has led to cancelled policies, higher premiums, higher deductibles, and other problems. Now it's becoming clear that the price of keeping this law in place will likely include bailouts and other payments to insurance companies. The government is simply not equipped to efficiently control one-sixth of the nation's economy. This is not what the American people were promised."

Learn more about "The Accountability Project" campaign and LIBRE's efforts to keep elected officials accountable for supporting the flawed Obamacare law that is causing families everywhere to lose their current health care plan and lose their full time jobs. They are elected to make the right decisions for the people – let's keep them accountable.

For interviews with a LIBRE representative, please contact: Judy Pino, 202-578-6424 or Brian Faughnan, 571-257-3309.