Over the past several days, a bill that would amend two medical loss ratio provisions of the Affordable Care Act was passed by the House Energy and Commerce Committee, a federal court said that Gov. Phil Bryant and other Mississippi residents were premature in their challenge to the federal law requiring people to buy health care insurance, and Oklahoma Attorney General Scott Pruitt asked a federal judge to rule that the individual mandate is inoperative in his state due to an Oklahoma constitutional amendment.
ON THE HILL
On Wednesday (9/19), the Congressional Budget Office said that nearly 6 million Americans, a number significantly higher than the one first estimated, would face a tax penalty under President Obama’s health overhaul for not getting insurance. Though there is some debate about whether the penalty should be considered a tax, a tax increase would clash with President Obama’s pledge not to raise taxes on individuals making less than $200,000 a year and couples making less than $250,000.
The medical loss ratio (MLR) mandates that insurers spend no less than 80 percent of their premiums on medical care rather than administrative costs or profit, or rebate the difference to policyholders. A measure that would alter the law’s medical loss ratio by excluding insurance brokers’ fees from counting as administrative costs and would give states more control over MLR waiver requests passed the House Energy and Commerce Committee this week. The 24-14 vote by Energy and Commerce clears the way for a potential House vote.
AT THE AGENCIES
The Office of Management and Budget projectedthat Medicare will be cut by $11.1 billion next year due to sequestration under the Budget Control Act of 2011 unless Congress passes new measures to prevent cuts.
IN THE STATES
IllinoisGov. Pat Quinn appointed Raul Recarey, former chief executive of the health information exchanges of two other states, to head the Illinois health insurance exchange.
On Wednesday (9/19), the Michigan Legislature took first steps toward tackling a proposed overhaul of the state’s largest health insurer, Blue Cross Blue Shield of Michigan. Senate Insurance Committee Chairman Joe Hune introduced bills that would end the nonprofit health insurer’s tax-exempt status and align it with competitors. These proposals result from Gov. Rick Snyder’s recommendations to "level the playing field" for insurers.
To date, the California Health Benefit Exchange has hired 50 employees and is prepared to hire 50 more. The state's construction of a web portal through which Californians will be able to buy Medicaid and others will be able to enroll in Medicaid.
IN THE COURTS
A federal court said that Gov. Phil Bryant and other Mississippi residents were premature in their challenge to the federal law requiring people to buy health care insurance or pay a penalty. Gov. Bryant and 10 others sued in April 2010, challenging the constitutional merits of the Affordable Care Act.
Oklahoma Attorney General Scott Pruitt , who filed a legal challenge to the Affordable Care Act in January 2011, yesterday asked a federal judge to rule that the individual mandate is inoperative in his state due to an Oklahoma constitutional amendment. Oklahoma amended its constitution in November 2012 to prohibit any rule or law forcing a person, employer or health care provider to participate in a health care system.
A chain of arts and crafts stores, Hobby Lobby, has sued the Obama administration to stop it from requiring companies to provide drugs such as the morning-after pill as part of their health insurance plans. Hobby Lobby, founded by evangelical Christians, is the first non-Catholic company or group to sue the government. If Hobby Lobby refuses to comply with the Affordable Care Act by January 1, it will face a $1.3 million per day fine.
IN THE ELECTION
The National Republican Congressional Committee is launching ads in 10 competitive election races across the country pointing to Democratic candidates’ support of the Affordable Care Act.
Vice presidential nominee Paul Ryan vowed on Friday (9/14) that a Romney administration would repeal the health care law as soon as it takes office.
To view our compilation of recent health care reform implementation news, click here.