Advertisements
Home

Yet Another White House Obamacare Delay: Out-Of-Pocket Caps Waived Until 2015

1 Comment

This is from Forbes.com.

This move delaying the implication of what as the DemocRats like

to remind us of that Obamacare is the law of the land is unconstitutional.

Where are the Republicans sounding off?

Will someone file a lawsuit against Obama  because of this delay?

Make no mistake this is a calculated move on Obama’s part.

Insurance companies profits will soar making them a bigger target.

The low information population will start screeching about the profits.

Obama has calculated this to decrease the damage in 2014.

First, there was the delay of Obamacare’sMedicare cuts until after the election. Then there was the delay of the law’semployer mandate. Then there was the announcement, buried in the Federal Register, that the administration would delay enforcement of a number of key eligibility requirements for the law’s health insurance subsidies, relying on the “honor system” instead. Now comes word that another costly provision of the health law—its caps on out-of-pocket insurance costs—will be delayed for one more year.

According to the Congressional Research Service, as of November 2011, the Obama administration had missed as many as one-third of the deadlines, specified by law, under the Affordable Care Act. Here are the details on the latest one.

Obamacare contains a blizzard of mandates and regulations that will make health insurance more costly. One of the most significant is its caps on out-of-pocket insurance costs, such as co-pays and deductibles. Section 2707(b) of the Public Health Service Act, as added by Obamacare, requires that “a group health plan and a health insurance issuer offering group or individual health insurance coverage may not establish lifetime limits on the dollar value of benefits for the any participant or beneficiary.” Annual limits on cost-sharing are specified by Section 1302(c) of the Affordable Care Act; in addition, starting in 2014, deductibles are limited to $2,000 per year for individual plans, and $4,000 per year for family plans.

Out-of-pocket caps drive premiums upward

There’s no such thing as a free lunch. If you ban lifetime limits, and mandate lower deductibles, and cap out-of-pocket costs, premiums have to go up to reflect these changes. And unlike a lot of the “rate shock” problems we’ve been discussing, these limits apply not only to individually-purchased health insurance, but also to employer-sponsored coverage. (Self-insured employers are exempted.)

These mandates have already had drastic effects on a number of colleges and universities, which offer inexpensive, defined-cap plans to their healthy, youthful students. Premiums at Lenoir-Rhyne University in Hickory, N.C., for example, rose from $245 per student in 2011-2012 to between $2,507 in 2012-2013. The University of Puget Sound paid $165 per student in 2011-2012; their rates rose to between $1,500 and $2,000 for 2012-2013. Other schools have been forced to drop coverage because they could no longer afford it.

According to the law, the limits on out-of-pocket costs for 2014 were $6,350 for individual policies and $12,700 for family ones. But in February, the Department of Labor published a little-noticed rule delaying the cap until 2015. The delay was described yesterday by Robert Pear in the New York Times.

Advertisements

Is The 29 Hour Work Week Coming As Employers Seek To Escape The Obamacare Mandate?

Leave a comment

This is from CNSNews.

 

Elections have consequences.

Now everyone will suffer because of the moochers.

Workers will see their take home pay drop.

Everyone will suffer.

Businesses with 50 or more employees who average at least 30 hours of work a week will be subject to the Obamacare insurance coverage mandate.

Companies are reportedly planning large layoffs due to the implementation of Obamacare.

But, companies can potentially avoid being subject to Obamacare’s insurance requirements by limiting employees’ weekly hours to less than the 30 hour level defined by Obamacare as “full-time.”

little-known section in the ObamaCare health reform law defines “full-time” work as averaging only 30 hours per week, a definition that will affect some employers who utilize part-time workers to trim the cost of complying with the ObamaCare rule that says businesses with 50 or more full-time workers must provide health insurance or pay a fine.

“The term ‘full-time employee’ means, with respect to any month, an employee who is employed on average at least 30 hours of service per week,” section 1513 of the law reads.  (Scroll down to section 4, paragraph A.)

That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees. In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.

Thus, by cutting employees’ hours to ensure they average less than the 30 per week, employers could potentially avoid the cost of providing the minimum insurance levels mandated by Obamacare.

 

 

%d bloggers like this: