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Health Insurance

Update: Legal Challenges to the Affordable Care Act

Posted on September 23, 2011

Since the enactment of the Affordable Care Act (ACA), at least 27 lawsuits have been filed challenging the constitutionality of various provisions of the law. While nearly half of the lawsuits have been dismissed on procedural grounds, three district courts have found provisions challenged to be constitutional, and three have found them to be unconstitutional. Previous HealthReform GPS Implementation briefs/updates have discussed these lower court decisions. Following appeals of each of these rulings, the United States Courts of Appeals in the Fourth, Sixth, and Eleventh Circuits have now issued decisions as well. Most importantly, the appellate decisions continue to reflect a split in judicial opinion regarding the constitutionality of the Affordable Care Act’s individual mandate. Other important issues addressed by the appellate rulings concerned the constitutionality of the ACA Medicaid expansion and the question of whether the trial court in the Virginia cases (Liberty University v. Geithner and Commonwealth of Virginia v. Sebelius) had the authority to hear the cases at all.

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Obama’s deficit reduction proposal to super committee includes health savings

Posted on September 20, 2011

President Obama sent “Living Within Our Means and Investing in the Future: The President’s Plan for Economic Growth and Deficit Reduction,” his plan to jumpstart economic growth and job creation, to the Joint Committee yesterday. The plan proposes additional savings on top of those signed into law under the Budget Control Act. Specific to health savings, the President recommended cuts to erroneous and wasteful spending under Medicare and Medicaid. He stressed that he would “veto any bill that takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share.”

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GOP issues report on CLASS Act

Posted on September 16, 2011

House and Senate Republicans have issued a new report on the Community Living Assistance Services and Supports (CLASS) program, a long-term care insurance program created by the Affordable Care Act (ACA). The report, “CLASS’ UNTOLD STORY: Taxpayers, Employers, and States on the Hook for Flawed Entitlement Program,” was issued by the bicameral Repeal CLASS Working Group, and calls for the repeal of the CLASS program due to questions surrounding its financial sustainability.

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Health Affairs Blog warns of medical necessity definition discrimination

Posted on September 16, 2011

A new Health Affairs Blog by Professor Sara Rosenbaum, a frequent contributor to HealthReformGPS.org, points out an issue with the medical necessity definition proposed in a glossary section of insurance terms that must be disclosed to consumers under the Affordable Care Act (ACA). The glossary is part of a larger proposed rule on Summary of Benefits and Coverage information that must be disclosed to consumers by insurance companies. The rule defines medical necessity as “[h]ealth care services or supplies needed to prevent, diagnose, or treat an illness, injury, disease or its symptoms and that meets accepted standards of medicine,” and could be viewed as discriminatory toward persons with disabilities because it omits the word “condition.”

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IRS issues RFC on potential safe harbor for large employers

Posted on September 15, 2011

The Internal Revenue Service (IRS) has released a Request for Comment (RFC) on a potential safe harbor for large employers under the shared responsibility provisions of the Affordable Care Act (ACA). Under the ACA, employers with more than 50 employees must provide affordable health coverage to workers, or else face a penalty. This potential safe harbor would allow employers to base what constitutes affordable coverage on an employee’s wages rather than the employee’s household income, which is something more difficult for employers to know or easily determine.

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Sebelius announces awards for future health centers

Posted on September 15, 2011

U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius has announced the awarding of $10 million to 129 entities around the country that intend on becoming community health centers. The money was made available by the Affordable Care Act (ACA) and will be used to develop new health centers, which provide access to care for many medically under-served Americans.

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District court rules individual mandate unconstitutional

Posted on September 13, 2011

Judge Christopher Conner of the U.S. District Court for the Middle District of Pennsylvania has ruled that the individual requirement to purchase health insurance (individual mandate) under the Affordable Care Act (ACA) is unconstitutional. In his ruling, Judge Conner found that the individual mandate exceeds Congress’ power under the Commerce Clause of the U.S. Constitution. Judge Conner also agreed with the government’s position that because the individual mandate is so intertwined with both the guaranteed issue and pre-existing condition provisions, all must be invalidated if one is invalidated. Therefore, in his ruling, all three provisions were severed from the ACA.

For more information of legal challanges to the ACA, click here.

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CMS issues RFI on Basic Health Program

Posted on September 9, 2011

The Centers for Medicare and Medicaid Services (CMS) of the US Department of Health and Human Services (HHS) has issued a Request for Information (RFI) on the Basic Health Program (BHP). The BHP is designed to offer an alternative pathway to coverage for low-income families, and must provide at least the same level of mimimum essential health benefits offered to other consumers through plans sold in the State’s Exchange. The RFI seeks input from stakeholders on what they feel will be challenges and costs associated with the BHP, how the BHP might affect the Exchange, and innovative strategies States could use in contracting with standard health plans.

For more information on the BHP, click here.

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Federal appeals court rules state of Virginia lacks standing in health reform challenge

Posted on September 8, 2011

The United States Court of Appeals for the 4th Circuit has ruled that the State of Virginia lacks standing to challenge the constitutionality Affordable Care Act (ACA). The Court found that the individual mandate did not apply to the State, and consequently, Virginia could not show that any injury resulting from the mandate’s enaction.

In a seperate but related opinion, the Court found that the tax anti-injuction act (AIA) negated its jurisdiction to hear hearing a lawsuit brought by Liberty University, also filed on the basis of ACA constitutionality.

For more information of legal challenges to the ACA, click here.

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HHS issues amended final rule on rate review, association plans subject to reviews

Posted on September 6, 2011

The U.S. Department of Health and Human Services (HHS) has issued an amended final rule clarifying the definition of “individual market” and “small group market” with respect to the rate review process authorized by the Affordable Care Act (ACA). The definition now includes association plans in the types of health insurance products that are subject to the rate increase disclosure rules ad reviews, even if States do not chose to regulate association plans as part of their own individual or small group markets.

For more information on the disclosure and review of insurance premiums under the ACA, click here.

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