Posted on 07/31/2018 9:23:52 AM PDT by Diana in Wisconsin
The Trump administration has approved a plan in Wisconsin allowing the state to shore up its Obamacare market.
The plan is expected to lower premiums in 2019 by an average of 3.5 percent. Without it, premiums would rise by 11 percent in 2019, even after seeing hikes of 44 percent for 2018.
“People in the individual market saw their premiums go up by 44 percent on average last year, and some saw much larger increases – that’s unsustainable and unacceptable,” said Republican Gov. Scott Walker, an Obamacare opponent. “Thankfully, the federal government is giving us the flexibility to implement a Wisconsin-based solution to help stabilize premiums. Our Health Care Stability Plan is simple and it lowers costs. "
The plan is approved through a waiver that is commonly known as an "innovation waiver." The specific waiver in Wisconsin will set up a reinsurance fund that keeps premiums at bay by funneling government money toward the most costly medical claims. The state will pay for $50 million of the reinsurance and the federal government will pay $150 million.
Wisconsin is the first state to have such a waiver approved in 2018; three other states have had reinsurance waivers approved in previous years.
Democrats have argued that the Trump administration and Republicans have "sabotaged" Obamacare, leading to higher premiums, and urged states to implement plans that would help to stabilize the exchanges. Reinsurance, for example, has bipartisan support.
Certain states view the waivers as an opportunity to take the law into their own hands in the face of Washington inaction. Wisconsin, for instance, previously indicated to the Washington Examiner that this was reason behind its reinsurance application.
“Wisconsin is stepping up to add stability to a healthcare mess left after Obamacare that Washington has not fixed,” said Amy Hasenberg, press secretary for Walker.
Wisconsin Insurance Commissioner Ted Nickel echoed similar sentiments upon receiving the news about the waiver approval.
"If Congress continues to avoid action, states will need to continue to take the lead to protect our citizens from the negative consequences of the ACA," he said, referring to Obamacare's formal name, the Affordable Care Act. "We hope we can find other approaches to lower costs and more competition in the Wisconsin health insurance market."
Waivers are intended to give states some flexibility on Obamacare, but have specific guardrails preventing lawmakers from overhauling the law. They are also known as 1332 waivers, due to the relevant section of the law.
The changes states ask for cannot increase the federal deficit, and they cannot cause more people to become uninsured, increase the cost of coverage, or reduce benefits. They can be approved for up to five years, but must be renewed afterwards.
The waivers must follow a specific process that starts with lawmakers passing a bill that then receives feedback and hearings with the public. States assemble reports on spending, the anticipated outcome, and how the plan will be put into place. They then put the information together in an application that goes to the federal government, which holds another public comment period, before rejecting or signing off on the idea.
“Wisconsin is stepping up to add stability to a healthcare mess left after Obamacare that Washington has not fixed,” said Amy Hasenberg, press secretary for Walker.
Wisconsin Insurance Commissioner Ted Nickel echoed similar sentiments upon receiving the news about the waiver approval.
"If Congress continues to avoid action, states will need to continue to take the lead to protect our citizens from the negative consequences of the ACA," he said, referring to Obamacare's formal name, the Affordable Care Act. "We hope we can find other approaches to lower costs and more competition in the Wisconsin health insurance market."
And there is no penalty in 2019, so the market can do its magic. Buy it if it’s worth it, don’t if it’s not.
“Democrats have argued that the Trump administration and Republicans have “sabotaged” Obamacare, ...”
Coming from the filthy pukes who sabotaged the entire healthcare system. I wait for the day we can sabotage the bloody Obamacare out of existence entirely. We had a shot at it until that vile prick McCain did his treachery.
It isn't rocket science. It's capitalism.
Back when the states were actually represented in the federal government... it was the federal government that would have to say "thankfully the states gave us the flexibility..."
As long as they remember there’s a difference between market and product.
Lower the premiums 3.5 per cent. wow.
If FedGov would get the hell totally out of Medicine and Insurance things would change radically for the better very soon.
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