Larry Chapman’s Blog

Results-Driven Worksite Wellness

ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title II, Sec. Technical corrections: “Bad” – Further unwisely expands eligibility. This legislative initiative further opens up eligibility for the CHIP program. It relaxes the legal language for residence and expands the eligibility caps. Because those controlling federal expenditure patterns (aka Democrats) did not have to compromise with those who oppose more federal spending (aka Republicans) , initiatives like this were included in the Law. Unfortunately the financial burden created by the other legislative initiatives in the Law makes every one of these overly generous and unwise provisions just one more insult to long term economic solvency for the U.S. economy. No discernible improvement in population health status and no discernible improvement in long term health cost control.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1563. Sense of the senate promoting fiscal responsibility: “Ugly” – No way is this Law going to reduce the federal deficit. This section is the explicit statement by Congressional sponsors of the expectation that the ACA will reduce the $17+ trillion federal deficit between 2010 and 2019 and improve the solvency of the Medicare Part A Trust Fund. I am sorry, but somebody is definitely smoking something. This is a huge case of wishful thinking with somebody else’s money. The net economic effect of the ACA as it currently stands will be to significantly increase the deficit and the insolvency of the Medicare program. It does not take a PHD economist to recognize that significant expansion of health insurance coverage without adequate cost controls will not lead to lower total health costs, no matter how creative your accounting practices are. Shame on you CBO!

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1562. Conforming amendments: “Good” – Required to consolidate the federal role over both group and individual health plans. This provision standardizes the federal Public Health Service (PHS) Act language regarding the regulation of group and individual health plan. This “clean –up” provision simply amends the language in the Act which allows the same legal treatment to group and individual health plans. Primarily housekeeping changes.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1561. Health information technology enrollment standards and protocols: “Good” – Requires enrollment technology. This provision requires the development of standards and guidelines on how streamlined enrollment technology will be developed. The emphasis here appears to be on streamlining the process with minimal attention to standards of accuracy and fraud avoidance.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1560. Rules of construction: “Good” – helps establish clarity in Law’s impact in four collateral areas.Lawmakers clarify here that no part of the ACA negates any of the antitrust laws, counters the ERISA exemption of the Hawaii Prepaid Health Care Act, prevent any institution of high education from offering student health insurance plans or modify the requirements on state agencies responsible for Medicaid and CHIP Programs. This is a typical kind of legislative provision to help resolve unforeseen construction or applicability issues.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1559. Oversight: “Good” – General authorization of Inspector General’s role in ACA. This provision recognizes that the Inspector General of the DHHS has administrative oversight over the Department’s role in the administration and implementation of the Law. This is a general intention statement on the part of the Congress related to the function of oversight of departmental activities. Standard item in most domestic legislation.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec 1558. Protections for employees: “Good” – Provides general protection to employees. This provision provides general protection to employees that utilize either premium credits or subsidies under the ACA. This statutory provision prohibits employers from discharging an employee because of their use of these features of the ACA. Seems like a way to prevent an employer from firing employees that utilize the credits or subsidies included in the Act. Would be better balanced if it also protected employers from employees that make intentional or unintentional misstatements about their coverage.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec 1557. Nondiscrimination: “Good” – a general prohibition against discrimination. This provision prohibits discriminatory actions under any aspect of the ACA and links to complaint and accountability provisions of civil rights, age, and disabilities discrimination laws. “Good” because it uses the existing federal administrative machinery to provide a recourse in the event of discriminatory practices rather than set up a whole new administrative structure for addressing discrimination issues under the Law.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1556. Equity for certain eligible survivors. “Good” – Provides continuity of coverage for those with “black lung” conditions associated with coal mining. This provision allows those grand fathered with “black lung” coverage to be included under the applicable provisions of the ACA. This appears to be a continuity of coverage provision extending the ability of those with “black lung” conditions to be covered under health plans authorized by the Law. Good for resolving issues of coverage for this special group. From a government efficiency standpoint it would seem to be advantageous to eliminate all separate aspects of “Black Lung Benefits” and incorporate them under the provisions of the ACA.

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ObamaCare Revealed: The “Good”, the “Bad” and the “Ugly”

ACA Title 1, Sec. 1555. Freedom not to participate in federal health insurance programs: “Good” – prevents coercion of health plan providers. This section provides a basic statement that prohibits any penalty or fine to any entity that offers health insurance and chooses not to participate in any federal health insurance program. However, one could argue that given the extensive involvement of federal health insurance programs in the financing of health care in the U.S. that not participating represents a “death wish” on the part of any health plan. Perhaps a somewhat perfunctory qualification.

Please let others know about this blog and have them “follow” @Wellness Czar on Twitter for the section topics. This information is also available in summary PDF form by making a request to [email protected].