Monday, November 25, 2013

A reader's Guide to the coming Obamacare Traumas

President Obama says not to worry about the Affordable Care Act's botched rollout because the country will love it once the website is fixed and subsidies start rolling. But what if the troubles are only beginning because they're built into the law? In the tradition of service journalism, we thought we'd offer a reader's guide to the many potential ObamaCare traumas to come. 
Technology woes beyond Dec. 1. President Obama has promised for weeks that the 36 federal exchanges and the Healthcare.gov website will work for "the vast majority of users" by the end of November. But he's refused to say how he defines success. 
Press leaks suggest that the White House goal is for four of five people who want to sign up for insurance to be able to do so, including via a call center or paper application. Yet even that 20% error rate may be overpromising. Health and Human Services deputy Henry Chao told a House hearing this week that about 30% to 40% of the information technology that supports enrollment—such as the "back end" systems that send out monthly subsidies—still needs to be built. 
All of which suggests that the Dec. 1 deadline is political, not a reflection of the repair team's progress. The White House had to say things would work by then to pre-empt a Democratic mutiny and because people whose insurance has been terminated must register by Dec. 15 for a new plan by the New Year. 
More cancelled health plans. Millions and perhaps tens of millions more Americans will lose their coverage, despite the White House's one-year suspension of the mandates that force insurers to liquidate their old products. The problem is backloaded. 
The wave would have been worse if not for a loophole that allowed early renewals: If people renewed their 2013 plans early, they could keep them in 2014 without complying with the mandates. Some 42 states allowed this loophole, but it only lasts through next November. 
Small business insurance disruption. Thus far the cancellations have been largely contained in the individual market but will soon spread to small businesses. Companies with 50 employers or fewer were more likely to choose or to qualify for locking in their old benefits. They're next on the cancellation block when the dispensation runs out. 
The fear that businesses will dump their workers onto the exchanges remains, given the law's strong incentives to do so. But the exchanges are so dysfunctional that this outcome is unlikely soon. Taxpayers are being saved for now by White House incompetence.
Read the rest of the story HERE.

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1 comment:

BOSMAN said...

The only thing that happens next year with Obamacare is that THINGS GET WORSE for THE MAJORITY of Americans. MORE will lose Insurance policies and EVERYONE'S cost of Health Insurance Premiums will rise as will most deductibles.

So if you haven't been affected yet...YOU WILL!