Posted on 03/10/2013 3:28:59 AM PDT by Libloather
A newly unveiled component of President Obama’s healthcare law forcing insurers to pay annual fees is sowing angst in state capitols, where officials view the provision as a $15 billion tax that could disrupt Medicaid programs and other services.
The health insurance providers fee, included in the healthcare reform law over the objections of congressional Republicans, is designed to raise tens of billions of dollars in the coming years.
In Wisconsin alone, the fee would hit the state’s coffers to the tune of $23 million in 2014, and will likely total more than that in subsequent years, said J.P. Wieske, legislative liaison and public information officer for the state’s Commissioner of Insurance.
The blow to Wisconsin’s private insurance market would be far higher – $3 billion over the next 10 years, Wieske said.
The proposed regulation’s details were published this week, and prompted harsh criticism from the health insurance industry, which warns that the fees would ultimately raise the price of healthcare. The Obama administration has countered that the insurer fee is just one of many provisions, which, taken together, would drive costs down.
But in states that participate in Medicaid managed care plans, the fee would be painful. One study commissioned by the Medicaid Health Plans of America found that states would be on the hook for $15 billion over the next ten years.
“That’s dangerous,” said Bruce Greenstein, Louisiana’s health secretary. “I have deep concerns.”
Greenstein said the fee is tantamount to discrimination, since some plans – including those offered by certain nonprofit healthcare providers – are exempt from the fee.
Administration officials did not imemditaely respond to requests for comment on the concern from states.
Nationwide, fees assessed on non-exempt insurers would total $8 billion next year and rise thereafter, eclipsing $14 billion in 2018, according to the Internal Revenue Service, which drafted the proposed rule. The fees would vary in size, depending on a firm’s net premiums, and would come due by Sept. 30 every year.
In Wisconsin, some smaller private insurers were considering changing their business model to nonprofit status because of the added costs, Wieske said.
For states offering Medicaid managed care, however, that is not an option.
Ultimately, the fee will raise the costs of Medicaid programs, which are funded by a combination of federal and state money, said Joe Moser, executive director for Medicaid Health Plans of America (MHPA).
The trade group opposes the fee in general and is pressing for its repeal. Short of that, Moser said, MHPA would support changes that exempt Medicaid. from the provision.
During consideration of the Affordable Care Act, congressional Republicans fought unsuccessfully to scrap the fees. Another attempt to do away with them is now under way in the House, where Reps. Charles Boustany Jr. (R-La.) and Jim Matheson (D-Utah) are pressing a bill to repeal the provision.
Even if the House were to pass the bill, it would have a tough road forward in the Senate and would likely face a veto from Obama.
Opponents, meanwhile, are trying to build their case against the fee. Already, the fee is a top issue for health insurers who contract with states, said Jonathan Dinesman, vice president of government relations for Centene Corporation, a managed care company based in St. Louis.
“This fee will discourage states from enrolling more people,” he said. “It contradicts the objectives of the ACA.”
Dinesman said Centene was still analyzing the language of the proposed rule. Beyond legislation to block or repeal the fee, opponents can submit public comments on the proposal for the next three months and otherwise seek to influence its language during the rulemaking process.
“Everything’s on the table,” he said.
Always has been. Pelosi knew all about it.
obama intends to kill you one way or another. Either through death panels or taxing you to death. Either way, you’re dead.
Say what?
Adding taxes drives cost down. I’ve always said that.
“A newly unveiled component of President Obama’s healthcare law”...
Oh that’s right this was voted on before it was even read... how long has it been since this crap sandwich of a bill was passed? “newly unveiled”.... raiiiiight.
When does it end?
I no longer have any tolerance for liberals, period. If you vote for the sort of people who enacted a bill like this... and continue to vote for them... you are attacking me, personally.
Here's my future as I see it:
When the Palin death panels materialize (which are already being discussed for "end of life familiarizaion"), and my loved ones have to die early because of Obamacare limitations, I am going to take a shit load of people with me.
We all die - no problem with that, but if they make me or mine die in pain before our time and because of their political agendas, I'm taking a shitload of them with me. I'll start with the politicians. Watch me - I have a plan I won't share here.
The lack of a tax is a cost in their lexicon, so by correcting this defect, and proberly instituting the missing tax, they have both colosed a loophole obviously abused by the evil rich [anyone who still has a nickel], and concurrently driven down the cost to government, by ensuring that the last person with a nickle ponies it up, with retroactive penalties, to be disclosed later.
But all of this should be obvious to the casual observer.
The important thing, is that Obama is sure that we share the same vision for America. You know, no guns except in the hands of government and criminals - but I repeat myself - no one with a nickel left, the red flag as the world flag, free room and board for all, at camp work will set you free, uhhh ...
Was that my outside voice?
Well, now that it’s been passed, you get to find out what’s in it. Is anyone surprised?
You’re not alone.
I hear ya.
The House of Representatives needs to grow some balls and defund Obiecare and file impeachment charges. 0 has done far more to be impeached than all of the other presidents that were impeached did combined.
Every elected Republican with backbone should be repeating this over and over........oooops Republican with backbone?
― Aleksandr Solzhenitsyn
Everyone needs a plan, and list. Our enemies are ruthless and cannot be dealt with politely. Our enemies will kill whole families. The young. The old. They are the types who put people in cattle cars and take them to camps. Our response cannot be to "get out the vote".
Yes, they did.
Re your post #6, I’ll bet you’re not alone.
If some death panel causes the death of my wife, its members are going to need Secret Service protection.
Obamacare is about stealing other people's money under color of law.
Dang! I empathize with what you say here. And, what I see is that no matter what happens in the next four years and beyond, Obamacare will not be repealed (please let me be wrong). Even if there was an outcry so loud that the Senate would vote along with the House to repeal this abomination, President Apocalypse, in his utter arrogance, will veto it.
Obamacare will "cover" many uninsured. By design, there will be enough takers to outvote the producers with the Dem party and MSM wailing, "the Repubs want to take away your healthcare". Very much like Social Security and Medicare fear mongering.
The only hope I see at this point is the redoubt of the state governments refusing to implement and fund the hydra of regulations and rules(may God help us).
One day, I hope that the low information voter stops asking the what and the why about Obamacare and asks the real question, what is the agenda?
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