THURSDAY, July 11 (HealthDay News) -- At the heart of President
Barack Obama's sweeping yet controversial health-reform law is the
largest expansion of health insurance in decades, and it's set to
take effect on Jan. 1, 2014. But some observers wonder whether it
will get off the ground as scheduled.
The law requires most adults to purchase health insurance or
face a penalty -- the so-called individual mandate. It seeks to
broaden health insurance coverage by:
But in a surprise announcement last week, the Obama
administration delayed the employer mandate, granting companies
another year -- until 2015 -- to work through federal rules and
Could the "individual mandate" be next? Is further upheaval in
"It does call into question, 'Is this just a one-time thing or the beginning of more delays and changes,'" said Steve Wojcik, vice president of public policy at the National Business Group on Health, in Washington, D.C.
With the 2014 deadline fast approaching and a lack of definitive
guidance from the federal government on implementing some parts of
the law, the Affordable Care Act -- dubbed "Obamacare" -- remains a
work in progress.
"I'm actually in the middle of still reading proposed regulations for exchanges," said Cristine Vogel, an associate director in the Chicago-based health-care practice of Navigant Consulting, Inc.
Timothy Jost, a professor at Washington and Lee University
School of Law in Lexington, Va., said core parts of the law,
including the exchanges and individual mandate, can operate without
the employer mandate. "I think the train is still on track,
although not moving as quickly as I would like," he said.
Half of states sit out Medicaid expansion
The Affordable Care Act faced its most significant challenge
last year when the U.S. Supreme Court considered whether requiring
most consumers to have health insurance, or pay a penalty, was
constitutional. The high court upheld this individual mandate last
June. But it also ruled that states could opt out of expanding
Medicaid -- the federal-state health insurance program for the poor
Expanding Medicaid to more low- and middle-income people is one
of the ways the architects of the health-reform law envisioned
reducing the ranks of the nation's uninsured by up to 30 million
Under the law, people making up to 138 percent of the federal
poverty level may qualify for coverage under the Medicaid
expansion. (That's as much as $15,856 for an individual or $32,499
for a family of four.)
So far, though, only 23 states and the District of Columbia plan
to participate in the Medicaid expansion. The remaining states are
mostly led by Republican governors who refuse to go along with
Low-income individuals in states that do not expand Medicaid
eligibility will not be penalized for not having health coverage.
But the poorest among them -- people living below the poverty line
-- won't be able to access federally subsidized coverage through
the state health exchanges, either. That leaves nearly 10 million
of 15 million potentially eligible adults without coverage,
according to a recent
Associated Pressanalysis of Urban Institute data.
"This rips the heart out of health-care reform because it denies access to America's most vulnerable," said Lawrence Gostin, professor of global health law at Georgetown University School of Law.
Will the health exchanges open in time?
Another 24 million people will be enrolled in health plans
through the state health insurance exchanges by 2023, according to
a Congressional Budget Office estimate. The administration hopes to
enroll 7 million people in the first year of eligibility.
Recently, though, Congress' Government Accountability Office
reported that health officials are running behind schedule on many
aspects of health exchange formation, including testing data
systems that will be used to determine eligibility for
On Friday, the Obama administration published regulations
scaling back the requirement that state health insurance exchanges,
or marketplaces, verify consumers' income and health insurance
status to obtain coverage under the law. Instead, the exchanges
will rely more heavily on self-reported information until 2015,
according to the
In a recent interview with
CNBC, Todd Park, chief technology officer with the U.S.
Department of Health and Human Services, said the state health
insurance exchanges are "on track" and will be up and running on
Oct. 1 for open enrollment.
Self-reporting will streamline the enrollment process, said Dan
Schuyler, director of exchange technology at the Salt Lake
City-based consulting firm Leavitt Partners. But, he added, "it
also opens the door to deliberate fraud, abuse and unintentional
Is Obamacare in trouble? Depends on whom you ask
Republican opponents of the Affordable Care Act assert that the
Obama administration is playing politics by delaying provisions of
the law, particularly the employer mandate, until after 2014
mid-term Congressional elections,
By 2023, the law will reduce the number of people without health
insurance by 25 million, still leaving 31 million uninsured,
according to Congressional Budget Office (CBO) estimates.
House Budget Committee Chairman Paul Ryan (R-Wis.) wants the CBO
to reevaluate the estimate of the law's impact in light of the
recent delays, according to
Alden Bianchi, group leader of the law firm Mintz Levin's
employee benefits practice in Boston, doesn't believe recent
changes suggest the federal law's implementation is in trouble, as
Republican opponents assert.
"The exchanges won't be perfect on Day One. The underlying electronic infrastructure that communicates among HHS (Health and Human Services) and the various state exchanges won't be up and running. But will people be able to get access to health care? Yeah, and that's really what exchanges are for," said Bianchi, who represented former Gov. Mitt Romney's administration for Massachusetts' 2006 health reform legislation.
David Smith, Leavitt Partners' director of payer services,
downplayed the possibility that the White House would put the
brakes on the state insurance exchanges or the individual
"Politically, the administration can't afford a delay of the more critical pieces of the law and will move mountains to implement them on time while managing expectations," he said.
To learn more about the Affordable Care Act visit the
U.S. Department of Health and Human Services.
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