Fix Health Care Policy

Why States Should Reject the California Model of a Health Insurance Exchange

State officials around the country are getting a lesson from the California legislature in how not to respond to Obamacare.

While the new federally supervised, state-based health insurance exchanges are to be up and running by January 1, 2014, the California legislature is poised to create the California Health Benefit Exchange through enactment of two bills (AB 1602 and SB 900). If Governor Arnold Schwarzenegger—who ran for office as a champion of conservative economic policy—signs these bills, California would be the first state to enact an ideologically compliant set of controls on the California health insurance market, effective January 1, 2011.

The California legislation would create the exchange as an independent government entity run by a politically appointed board with representatives of the governor, the Speaker of the California Assembly, and the Senate Rules Committee. From all appearances, this is the version of a health insurance exchange favored by the left, meaning that its main function would be to regulate insurance options, control benefits, enroll individuals in Medi-Cal (the California version of the Medicaid program) and administer government subsidies for public health. With the California board, its administrative costs would be borne by assessments on the persons getting coverage through the exchange; it would also benefit from appropriations outside of the California budget process. (more…)

Tags: California Assembly, California Health Benefit Exchange, Medicaid, state health care costs

Iowa Legislator Aims to Inhibit Effects of Obamacare

Long before President Obama signed the Patient Protection and Affordable Care Act into law, Iowa state representative Linda Upmeyer knew she opposed it and attempted to prevent the most objectionable provisions from affecting her state. Six months after its passage, she’s still against Obamacare — and willing to do whatever it takes in Iowa to protect her citizens.

As a registered nurse, Upmeyer knew as soon as she learned about the major measures of Obamacare that it would force health care providers to jump through new hoops.

“Providers are going to be spending more time filling out more forms,” she said. “It adds another layer of bureaucracy and every piece of bureaucracy costs money.” (more…)

Tags: federalism, Founding Fathers, health insurance exchange, Iowa, ObamaCare

Side Effects: Doughnut Hole Deal Not so Sweet

Currently 3.4 million Americans seniors covered by Medicare find themselves in a giant “doughnut hole,” but despite the tasty terminology, there’s nothing sweet about it.

The doughnut hole refers to a gap in prescription drug coverage under Medicare Part D. As David Hilzenrath explains, “…beneficiaries enter the coverage gap when their prescription tab hits $2,830, including both their share and the amounts paid by insurance. Once in the gap, they are responsible for 100 percent of the cost and must spend $3,610 of their money before qualifying for catastrophic coverage, which typically pays 95 percent of the cost.”

President Obama has pledged that the Patient Protection and Affordable Care Act will, “in the coming years… close the doughnut hole completely once and for all,” while also conceding that “it’s very expensive to close this doughnut hole…[, and] for us to close that right away would have blown a hole in the budget.” (more…)

Tags: doughnut hole, Medicare, ObamaCare, Seniors, Side Effects

In the Green Room: Scott Rasmussen on Tea Parties, Obamacare’s Unpopularity

Scott Rasmussen, President of Rasmussen Reports, a widely respected polling company. For years, Rasmussen polling has helped legislators, business leaders, and the general public gain a sense of the country’s opinions on any number of important issues.

Recently, Scott teamed up with pollster Doug Schoen on a new book, entitled, “Mad as Hell: How the Tea Party Movement is Fundamentally Transforming our Two-Party System” which delves in to what the tea party movement is, what it believes, and the impact it will have on our nation. Before a book event here at The Heritage Foundation, Scott sat down with us for a short interview. (more…)

Tags: ObamaCare, Public Opinion, Rasmussen Reports, repeal, Scott Rasmussen

How Much More Can They Get Wrong? The New Obamacare Impact Calculator Answers

There’s been a lot of misinformation when it comes to the new health care law—but not in the way Obamacare supporters have been claiming. We heard early on in the health reform debate that a massive overhaul of the private health care sector would bend the health care cost downward.

But when that looked unlikely under the best scenarios, Obamacare proponents pivoted and said the American public would embrace this law. Even former President Bill Clinton recently admitted he was wrong in saying that Democrats would pick up additional support with Obamacare’s passage.

So how much more could the new health law impact Americans and the health sector if other forecasts, such as those from the Congressional Budget Office, turn out to be false? Heritage’s brand-new Obamacare Impact Calculator shows the real-time results of what these changes could mean to you, the federal budget and the US economy if the CBO is wrong. (more…)

Tags: Budget Gimmicks, Congressional Budget Office, health care costs, Obamacare Impact Calculator