Wednesday, August 31, 2016

Gov't Try to Fix Obamacare with Big Changes

Obamacare, ACA, health care act, health care law

The Obamacare or the Affordable Care Act has been hit with some major setbacks as big health insurers like Aetna are pulling out of the public exchanges, also some  regulators have said that the exchanges is collapsing due to increases in premium prices and the dwindling number of insurers. 

The US Centers for Medicare and Medicaid Services (CMS) have proposed a number of changes last Monday to try to save the exchanges on its impending collapse. The proposal will make it less risky for insurers in the marketplace to enroll sick patients. The major problem of insurers in the exchanges is that there are few young and healthy people to even out the cost of taking care of sick patients, which lead to huge losses.

"Right now, we are preparing to serve millions of consumers with a new set of innovations during the upcoming Marketplace Open Enrollment. As we do this, we are proposing today a set of critical actions based upon our first 3 years' experience that, if finalized, would improve how consumers and health plans interact with the Marketplace," said Acting Administrator of the Centers for Medicare and Medicaid Services Andy Slavitt. "These proposals help fulfill the promise that affordable, quality health coverage can be provided to everyone who needs it."

There are 14 proposals in total, here are some of them:

- Proposes updates beginning in 2017 to better reflect the risk associated with enrollees who are not enrolled for a full 12 months.

- by using some of the fees from the federally funded marketplace for outreach to get more young people to sign up.

- Strengthening rules for signing up for insurance outside the open-enrollment period to ensure that people are not waiting until they are sick to get coverage.

- Take prescription-drug use into account when evaluating the risk profile of potential patients. Previously, this had not been taken into account, and insurers argued that it prevented them from getting a full picture of possible patients' health status.

- Creating more flexibility for insurers in their bronze plan offerings to reduce cost burdens.

The proposed rule can be found here

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