This Obamacare rule delay could really hurt
Insurers are getting a one-year reprieve on a key provision aimed at limiting consumers' out-of-pocket costs.
The Obama administration touts the Affordable Care Act as a way to make health care insurance both widely available and cost-effective. But a new twist in the law may put the second goal at risk.
Buried in a tangle of bureaucratic language is a key change to Obamacare that will delay an out-of-pocket cost limit for individuals and families, The New York Times reports.
Obamacare had promised to hold out-of-pocket spending to no more than $6,350 for an individual and $12,700 for a family. But federal officials are now allowing some insurers to take an additional year to meet those limits, the newspaper notes.
Why delay the cost ceiling? Pressure from insurers, according to an unnamed administration official.
"We had to balance the interests of consumers with the concerns of health plan sponsors and carriers, which told us that their computer systems were not set up to aggregate all of a person's out-of-pocket costs. They asked for more time to comply," the official said.
The change was called illegal and unconstitutional by Sen. Rand Paul, R.-Ky., Fox News reports. "The president doesn't get to write legislation, and it's illegal and unconstitutional for him to try and change legislation by himself," Paul said.
People most likely to be hurt by the delay are those with chronic conditions. Multiple sclerosis patients, for instance, can face direct treatment costs that exceed $20,000 per year, according to a 2007 paper. Some drugs for chronic illnesses can cost more than a car, such as Sanofi-Aventis' (SNY) Cerazyme, a treatment for Gaucher disease that can cost as much as $200,000 per year.
The delay was greeted with dismay by representatives of several groups, including the National Multiple Sclerosis Society, which told The New York Times it was disappointed, and the American Cancer Society, which warned that patients "could continue to have enormous financial pressure."
By 2015, health plans must be in compliance with the law.
But given that this tweak comes after Obamacare's one-year delay on its employer mandate to provide insurance, it raises doubts about whether the legislation will actually provide the relief it had promised.
Follow Aimee Picchi on Twitter at @aimeepicchi.
Nancy Pelosi and Forrest Gump both had it right,
Nancy told us we would find out about Obama Care once they passed it. How's that working out?
Forrest told us Stupid is as Stupid does! Enough said!
Obama lied-again. After all the deals and special exceptions, one small business in North Carolina will be the only available/eligible/mandated Obama careless entity. Premium per person will be $5 gazillion per single, per month. Everyone else is excluded or gets it free.
We gotta start funding Obamas face on Rushmore------at the bottom as worst president ever.
Oh, what a surprise!!! I guess I shouldn't plan on spending any of the money Obama was going to save me. Let's see, when Obama says costs are going to rise ie electricity and fuel costs, they go up. When Obama says my health costs will go down, they go up. Hmmmmm, does that mean he only lies half of the time?
Obama thinks he is ordering from a menu...Enforce this provision, no enforce this provision. I didn't know he has legislative capabilities too. Oh yeah, he is the self appointed King of the USA.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on a modestly lower note, but a late-morning rebound lifted the indices off their lows. The S&P 500 shed 0.2% with seven sectors ending in the red.
This morning, European equities and U.S. futures slumped around 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news pressured the markets, but a brief uptick took place after a correction to ... More
More Market News
The Ukraine crisis festers and other fresh concerns boil to the surface, knocking down markets and giving volatility some life.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'