Wednesday, December 7, 2022
Hawai'i Free Press

Current Articles | Archives

Monday, April 15, 2013
Cost of Health Insurance Exchanges Shoots Up
By NCPA @ 2:22 PM :: 2559 Views :: Health Care

NCPA April 15, 2013

The functionality of the ObamaCare health mandate hinges on the ability of exchanges to fulfill the role envisioned for them by the authors of the law. As installation of the exchanges becomes more complicated, the cost of the exchanges has risen rapidly over the last year, says Politico.

  • The costs have risen substantially due to the U.S. Supreme Court's ruling regarding Medicaid expansion.
  • Medicaid spending will probably be less than initial forecasts because some states are declining to expand coverage.
  • The federal government promised to pay all of the costs of Medicaid expansion initially, but that level of reimbursement shrinks to 90 percent over several years, which shifts significant financial responsibilities to the states.

The new White House budget expects that from January 1, 2014, when the exchanges officially open, to 2021, the administration will spend about $606 billion subsidizing insurance on the exchanges. This massive commitment of federal resources is more than initially projected because of the Supreme Court's ruling that states have the right to choose whether to expand Medicaid.

  • In states that refuse to expand Medicaid, individuals that would have been covered by Medicaid will now be eligible for subsidies on the exchanges, which will drive up costs on the exchanges.
  • Individuals earning between 100 percent and 400 percent of the federal poverty level will qualify for the subsidies, which are expensive, especially for people closer to the poverty line.
  • The Congressional Budget Office estimates that the exchange subsidies will cost $3,000 more than Medicaid coverage would for the qualified person.

Supporters of the health care law say that optional Medicaid expansion grants flexibility to states and creates cost savings. But while the newest budget revised down the total expected amount of Medicaid spending in 2020 by $135 billion, the actual costs of the exchanges is largely unknown.

  • Costs will be difficult to predict until after the provisions are implemented because the government cannot predict the participation rate.
  • Another unpredictable cost is how much insurance companies will charge the federal government for its enhanced coverage plans.
  • Depending on the premiums insurers charge, costs could remain close to projections or skyrocket far beyond current estimates.

Source: Brett Norman, "Cost of Exchanges Shoots Up," Politico, April 12, 2013.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT