06.18.15

Obamacare: ‘A Well-­Documented Disaster’

Healthcare.gov Far From The Only Aspect Of Obamacare That Has Been A Disaster For The American People

PRESIDENT BARACK OBAMA: “But I’ll be honest with you. With all the crises we were dealing with—the economy collapsing, the auto industry on the verge of collapse, winding down wars—this did not get the kind of laser-focused attention until ­Healthcare.gov, which was a well-­documented disaster, but ended up anyways being the catalyst for us saying, ‘Okay, we have to completely revamp how we do things.’” (“President Obama: The Fast Company Interview,” Fast Company, 6/15/15)

 

$3 Billion In Obamacare Subsidy Payments ‘Untraceable’ and ‘At Risk’

HHS INSPECTOR GENERAL: “Because CMS has not developed the systems to obtain enrollment and payment information on an enrollee-by-enrollee basis, CMS cannot verify the accuracy of the nearly $2.8 billion it authorized for financial assistance payments during our audit period” (Office Of Inspector General, Department Of Health And Human Services, June 2015)

“The Obama administration cannot account for nearly $3 billion in subsidies paid to insurance companies in 2014, according to a government watchdog.” (“Government Can't Explain $3B in ObamaCare Payments,” The Hill, 6/17/15)

“Those dollars are untraceable because the Department of Health and Human Services (HHS) did not have “effective” methods to do so, according to a report from the department’s inspector general released Tuesday.” (“Government Can't Explain $3B in ObamaCare Payments,” The Hill, 6/17/15)

“CMS also ‘did not have systems in place to ensure that financial assistance payments were made on behalf of confirmed enrollees and in the correct amounts,’ the report said.” (“Big Obamacare Funds 'At Risk' From Lax Oversight,” CNBC, 6/17/15)

“Officials from HHS…acknowledged that they have “not established a computerized payment system.” (“Government Can't Explain $3B in ObamaCare Payments,” The Hill, 6/17/15)

“The report found that the controls in place ‘were not effective’ for calculating the amount of money insurers were owed and for authorizing the payments made to them.” (“Big Obamacare Funds 'At Risk' From Lax Oversight,” CNBC, 6/17/15)

“Without such ‘effective internal controls ... a significant amount of federal funds are at risk,’" said the report issued by the inspector general of the U.S. Health and Human Services Department on Tuesday.” (“Big Obamacare Funds 'At Risk' From Lax Oversight,” CNBC, 6/17/15)

“In their letter to acting CMS Administrator Andy Slavitt, Grassley and Hatch wrote, ‘We have been concerned about vulnerabilities related to internal controls at CMS due the [Affordable Care Act]-this is yet another in a long line of problems which have occurred since the ACA's initial implementation.’" (“Big Obamacare Funds 'At Risk' From Lax Oversight,” CNBC, 6/17/15)

 

If You Like Your Plan, You Can Keep It 

2013 Flashback: “In the market for individually-purchased health insurance, more than 4.8 million Americans have received notices that their preexisting plans are soon to be illegal, and will be cancelled.” (“The Obamacare Exchange Scorecard: Around 100,000 Enrollees And Five Million Cancellations,” Forbes, 11/12/13)

POLITIFACT’s 2013 Lie of the Year: 'If you like your health care plan, you can keep it' (Politifact, 12/12/13)

CA Woman: ‘The health plan she’s paid for through the Affordable Care Act keeps sending her to doctors who say they can’t treat her because they won’t take her insurance’ REPORTER: “Beth Kramer says she’s running out of options.” PHONE: “The expected wait time is approximately one hour.” REPORTER: “And out of time. The disabled mother of two says she’s out of medication for an auto-immune disease, she’s run out of antibiotics for a painful internal infection, and the health plan she’s paid for through the Affordable Care Act keeps sending her to doctors who say they can’t treat her because they won’t take her insurance.” KRAMER: “I’m out of medication.  I’m sitting here with an infection that I’m out of antibiotics [for] and symptoms are coming back and I have no idea when I can go to a doctor or where.” REPORTER: “Kramer signed up for healthcare under the Affordable Care Act through Covered California…” (KCBS-CA, 1/22/14)

NY Woman: Insurance plan canceled under Obamacare, ‘I’m dead in the dirt, I can’t do anything.  I can’t go to the doctor.’ REPORTER: “Many people in the Rochester area lost their healthcare insurance January 1.  They’re among the millions across the country who saw their plans canceled under the Affordable Care Act.  Nancy Miller is one of them.  The self-employed hairdresser says she began doing research in September to make sure she’d be covered this year, but she then learned the health plan that she’d had for years was no longer available. She says other options were too expensive.  Miller has some health issues that require medication, treatments and tests – treatments she’s delayed because of the lack of insurance.” MILLER: “I’m not going to lose my house because I don’t have health insurance and I need medical assistance, so I’m dead in the dirt, I can’t do anything.  I can’t go to the doctor, I can’t have my tests run, I can’t go for an MRI.” (YNN-NY, 1/7/14)

KY Man: “Dentist Aaron McLemore of Louisville, Ky... The 31-year-old's current policy is being canceled. A new policy from the exchange will more than double his monthly premium and nearly double his yearly out-of-pocket maximum.” (“How The Affordable Care Act Pays For Insurance Subsidies,” NPR, 11/7/13)

 

Premiums Could Rise By Up To 100% 

BROKEN PROMISE: “Finally, my proposal would bring down the cost of health care for millions -- families, businesses, and the federal government.” (President Obama, Remarks, 3/3/10)

“The cost of Obamacare could rise for millions of Americans next year, with one insurer proposing a 50 percent hike in premiums, fueling the controversy about just how “affordable” the Affordable Care Act really is.” (“Experts See Big Price Hikes For Obamacare,” Politico, 5/30/15)

“Hold onto your wallets ... many insurers want to substantially hike rates on Obamacare policies for 2016.” (“Obamacare Sticker Shock: Big Rate Hikes Proposed For 2016,” CNN, 6/2/15)

“Major carriers from around the country are proposing big increases in the premium rates paid by consumers who buy insurance policies on their own.” (“More Health-Care Insurers Seek Big Premium Increases,” Wall Street Journal, 6/1/15)

IDAHO: Rate increases up to 100% “Blue Cross of Idaho Health Service, Inc., Gold & Silver St. Luke’s CCO – Individual … Requested Rate Increase: 100%.” (“Idaho Rate Review Submissions,” Healthcare.gov, Accessed 6/2/15)

ARIZONA: Rate increases up to 79% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 78.88%.” (“Arizona Rate Review Submissions,” Healthcare.gov, Accessed 6/2/15)

NEVADA: Rate increases up to 73% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 72.78%.” (“Nevada Rate Review Submissions,” Healthcare.gov, Accessed 6/2/15)

ALABAMA: Rate increases up to 71%“Blue Cross and Blue Shield of Alabama, Blue Choice Platinum – Individual … Requested Rate Increase: 70.88%.”  (“Alabama Rate Review Submissions,” Healthcare.gov, Accessed 6/2/15)

KENTUCKY: Rate increases up to 65% “Time Insurance Company, Individual Medical Plan – Individual…Requested Rate Increase: 65.44%” (“Kentucky Rate Review Submissions,” Healthcare.gov, Accessed 6/17/15)

 

State Exchanges Shutting Down And Under Federal Subpoena

 

Hawaii Exchange: $205 Million Of Taxpayer Money Wasted on Shuttered Exchange 

“Hawaii's health insurance exchange announced on Friday that it will be shutting down, and its nearly 40,000 enrollees will be transitioned to the federal Obamacare marketplace, Healthcare.gov.” (“Hawaii Pulls The Plug On Embattled Health Insurance Exchange,” Huffington Post, 6/6/15)

“The once-highly praised Hawaii Health Connector has been “unable to generate sufficient revenues to sustain operations,” Gov. David Ige’s office said in a statement.” (“Hawaii Abandons Troubled State Obamacare Exchange,” Fox News, 6/5/15)

“The Obama administration first warned Hawaii this spring that the state exchange was failing to meet federal standards for financial sustainability, IT support and eligibility enrollment system.” (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

“Critics of ObamaCare have been quick to condemn the $205 million spent to create the exchange.” (“Hawaii’s ObamaCare Exchange In Jeopardy,” The Hill, 5/15/15)

 

Nevada Exchange Called ‘A Full Failure’ And A ‘Catastrophe’ 

“Nevada has become the latest state to scrap its crippled Obamacare exchange and join the federal HealthCare.gov for at least a year.” (“Nevada Latest State To Scrap Its Obamacare Exchange,” Politico, 5/20/14)

“Overseers of Nevada Health Link have called that state’s program a “full failure” and a “catastrophe.” Some officials have suggested dumping Xerox, which was awarded a $75 million contract to develop the system.” (“Nevada’s Obamacare Program Called ‘Full Failure,’ ‘Catastrophe’,” Associated Press, 3/25/14)

“The exchange spewed out inaccurate information to people signing up, including incorrect subsidy amounts for low-income people.” (“Nevada Latest State To Scrap Its Obamacare Exchange,” Politico, 5/20/14)

“Last month Nevada officials cut their target enrollment from 118,000 to 50,000 and conceded that meeting even the lower goal would be a challenge.” (“Nevada’s Obamacare Program Called ‘Full Failure,’ ‘Catastrophe’,” Associated Press, 3/25/14)

“An outside report concluded that salvaging the major flaws in the exchange would be a huge feat. The system has spent $51 million of the approximately $90 million in federal grants that were authorized, according to a spokesman. “The report seems overwhelming to me,” Lynn Etkins, vice chairwoman of the Health Link board, said last week. “And I really am not hearing anything that all of these issues are going to be resolved well before open enrollment so testing can be done.” (“$474M For 4 Failed Obamacare Exchanges,” Politico, 5/11/14)

 

Massachusetts Exchange: FBI Probe Subpoenas Massachusetts Health Connector Records 

“Federal authorities have subpoenaed records related to the Massachusetts Health Connector, including a period covering the breakdown of the health care exchange's website, The Associated Press has learned.” (“Feds Seek Massachusetts Health Exchange Records,” WCVB, 5/7/15)

“The FBI and U.S. Attorney for Boston have subpoenaed records related to the commonwealth’s “connector” dating to 2010. This insurance clearinghouse was Mitt Romney’s 2006 beta version for ObamaCare’s exchanges, but updating the connector to comply with the far more complex federal law became a fiasco rivaling any of the other federal and state ObamaCare failures.” (“ObamaCare’s Big Dig,” Wall Street Journal, 5/10/15)

  • “Formed in 2006, the Connector needed to upgrade its website to meet the terms of the federal Affordable Care Act. But the new website, rolled out in October 2013, failed so disastrously that it had to be scrapped and rebuilt. Meanwhile, there was no way to determine whether people seeking coverage were eligible for government help, so the state moved them all into a temporary Medicaid program.” (“US Attorney Subpoenas Records Related To Health Connector,” Boston Globe, 5/7/15)

“A test before going public showed a 90% failure rate, and the new connector detonated on the launch pad. Some 320,000 residents attempting to gain coverage had to be dumped into a temporary “free” Medicaid program without any income eligibility determination. Pioneer pegs the total cost of the mess at around $1 billion. (“ObamaCare’s Big Dig,” Wall Street Journal, 5/10/15)

 

Nearly 1 Million Americans Sent Wrong Tax Info From IRS

“The administration sent incorrect tax information to 800,000 people who have enrolled in health insurance through ObamaCare, the administration announced Friday.” (“Feds sent bad tax info to 800,000 people on ObamaCare,” The Hill, 2/20/15)

“The errors mean that nearly 1 million people may have to wait longer to get their income tax refunds this year. (“800,000 HealthCare.gov customers given wrong tax info,” Associated Press, 2/20/15)

“Some enrollees were mistakenly told they received too large a subsidy, while others were told their subsidy was too small.” (“White House extends Obamacare deadline, admits subsidy snafu,” CNN Money, 2/20/15)

“Another 50,000 or so who already filed may have to resubmit their returns.” (“800,000 HealthCare.gov customers given wrong tax info,” Associated Press, 2/20/15)

“…Officials are asking people to delay filing their taxes until the problem is corrected.” (“Feds sent bad tax info to 800,000 people on ObamaCare,” The Hill, 2/20/15)

“Some consumers will be very frustrated,” said Christine Speidel, a tax lawyer at Vermont Legal Aid, “because they count on those refunds to buy home heating oil, to pay for car repairs and to pay off credit card bills.” (“Tax Error In Health Act Has Impact On 800,000,” New York Times, 2/20/15)

“Bruce N. Breslau, 61, of Los Angeles County said he had received a postcard from the exchange acknowledging a problem and promising to send correct information that he could use in preparing his tax return. “How is one to trust any document which emanates from the exchanges?” Mr. Breslau asked.” (“Tax Error In Health Act Has Impact On 800,000,” New York Times, 2/20/15)

 

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Related Issues: Health Care, Obamacare