On December 1 the New York Times reported the following:
WASHINGTON — The Obama administration said Friday that it would charge insurance companies for the privilege of selling health insurance to millions of Americans in new online markets run by the federal government.
The cost of these “user fees” can be passed on to consumers. The proposed fees could add 3.5 percent to premiums for private health plans sold in insurance exchanges operated by the federal government.
In a separate action, federal officials said that consumers would soon have access to nationwide health plans similar to those available to members of Congress and other federal employees. These plans will be offered by private insurance companies under contract with the United States Office of Personnel Management. The agency already provides insurance to eight million federal employees, retirees and dependents.
“This new initiative will promote competition in the insurance marketplace and ensure individuals and small businesses have more high-quality, affordable insurance choices,” said John Berry, director of the personnel agency.
The steps announced on Friday show the White House rushing to carry out the health care law signed by President Obama in March 2010. They also illustrate the rapidly growing role of the federal government in the nation’s health care system.
Under previously issued regulations insurers will be charged reinsurance fees per enrolled person in employer group plans to subsidize the adverse selection in the exchanges ($5.25 per covered life, per month in 2014, equivalent to $63 per covered life for the year).
Now they will be charged user fees on top of that. All this adds up to higher premiums down the line.
The nationwide plans must be offered as an option in the state health insurance exchanges as part of Obamacare. These quasi-public options operate under special rules and some critics say they are positioned to undercut health insurance plans that must operate under state rules and are nothing more than a step toward a single payer system.
Interesting that the NYT should point out “the rapidly growing role of the federal government in the nation’s health care system.” That’s an understatement.
Related articles
- Health Insurers Will Be Charged to Use New Exchanges (nytimes.com)
- Administration To Sponsor Nationwide Health Insurance Plans (crooksandliars.com)
- Insurers to Pay Fees in States Rejecting Health Law – Bloomberg (bloomberg.com)
- U.S. Set to Sponsor Health Insurance (nytimes.com)
- A Backdoor Public Healthcare Option in 2014? (mikethemadbiologist.com)
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- A Backdoor Public Healthcare Option in 2014? (mikethemadbiologist.com)
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