Fix Health Care Policy

Obamacare Insurance Exchanges: States Have Options

Governor John Kasich (R) is expected to opt not to set up a state Obamacare exchange. This is the right decision for Ohio. The President’s health care law is unworkable and unsustainable. Rejecting the health insurance exchanges, and equally as important, the Medicaid expansion, are two opportunities states have to push back on this law and instead push forward on a better health reform agenda for Ohio.

These exchanges are used in the law to funnel subsidies to government-controlled health plans. Some proponents of the law will undoubtedly criticize the Governor’s decision. But, there are more practical and sound reasons why opting not to adopt a state exchange is best for the states.

First, under the exchange regulations promulgated by the Secretary of Health and Human Services (HHS), states would gain no meaningful flexibility or advantage by operating their own exchanges, relative to a federally facilitated exchange. They would simply be acting as vendors to HHS.

Second, states still regulate insurers (including those participating in exchanges) in all matters not otherwise preempted by federal law, regardless of who operates the exchange. States can also regulate exchange “navigators” through state professional licensure statutes, to ensure equal standards/level playing field with other insurance producers, again, regardless of who operates the exchange.

Read the rest on The Foundry…

Tags: federal mandate, health insurance exchange, HHS, ObamaCare, options, repeal the law, States

Obamacare Takes a Double Shot at the Economy and the American Dream

In a recent piece for The Wall Street Journal, Daniel Kessler, a senior fellow at the Hoover Institution, describes how the new health care law’s subsidy program to help low- and middle-income Americans purchase health insurance will have severe economic consequences. These will include discouraging work for qualifying individuals and other taxpayers, disrupting America’s labor markets, and reducing economic activity.

Beginning in 2014, when the new health insurance exchanges will open for individuals and small businesses, subsidies will become available for those whose income falls between 134 percent and 400 percent of the federal poverty level (FPL). For a family of four living in a high-cost area, earning 134 percent of the FPL ($31,389 in 2014 dollars) would qualify them to receive $22,740 in assistance. A similar family earning an income at 400 percent FPL ($93,699) would qualify to receive $14,799 in subsidies.

The problem is that as income increases, families will experience large reductions in government assistance, which will discourage striving to earn a higher income. (Read the rest on The Foundry…)

Tags: federal poverty level, health insurance exchange, ObamaCare, repeal the law

Iowa Legislator Aims to Inhibit Effects of Obamacare

Long before President Obama signed the Patient Protection and Affordable Care Act into law, Iowa state representative Linda Upmeyer knew she opposed it and attempted to prevent the most objectionable provisions from affecting her state. Six months after its passage, she’s still against Obamacare — and willing to do whatever it takes in Iowa to protect her citizens.

As a registered nurse, Upmeyer knew as soon as she learned about the major measures of Obamacare that it would force health care providers to jump through new hoops.

“Providers are going to be spending more time filling out more forms,” she said. “It adds another layer of bureaucracy and every piece of bureaucracy costs money.” (more…)

Tags: federalism, Founding Fathers, health insurance exchange, Iowa, ObamaCare

Health Reform That Breaks the Bank

During last month’s Blair House health care summit, President Barack Obama was forced to change the subject after Rep. Paul Ryan (R-WI) Blair House thoroughly refuted the President’s claim that his health care plan would reduce the deficit. It took over a week for the White House to respond to Ryan, but last Thursday they finally produced this blog post by OMB director Peter Orszag followed by a Washington Post op-ed Friday titled: Health reform that won’t break the bank. Ethics and Public Policy Center fellow James Capretta responded to the White House that same day at NRO:

“Orszag and DeParle start by agreeing with Ryan that delaying the start date of an entitlement expansion is a tried-and-true budget gimmick, designed to push the full cost of the additional spending outside of the ‘budget window’ covered by a cost estimate.” (more…)

Tags: bend cost curve, double-counting, Health Care Summit, health insurance exchange, high-cost insurance plans, Medicare, Rep. Paul Ryan

In the Green Room: Dr. Norm Thurston, Utah’s Free Market Health Reform Architect

Dr. Norm Thurston is doing something extraordinary: he’s implementing consumer-driven health care fixes in Utah. When many employers recently started dropping health benefits the state reacted with reforms that make costs predictable for both employers and consumers. Predictability depends on accurate information for all sides. The Utah Health Exchange makes this possible. Here’s how it works:

Companies choose a fixed amount to contribute toward employee health benefits. Employees contribute pretax money from their own paychecks, and they can make contributions from a spouse’s job or a second employer as well. (more…)

Tags: Barack Obama, consumer centered health care, consumer choice, free market health care reform, health care reform, health insurance, health insurance exchange, in the Green Room, norm thurston, Obama Health Care Plan, senate health care bill, utah health exchange