Texas Medicare Facing Highs and Lows
Obamacare had its ups and downs on the news front Wednesday.
The bad news, which was already widely reported, was that many milestones the Centers for Medicare and Medicaid Services hoped to achieve by now in creating health insurance exchanges have not been met.
The General Accounting Office says that CMS is behind in getting consumer assistance up to speed, is falling short in plan management and still has not met necessary milestones in setting up eligibility and enrollment programs. The exchanges are set to open for business Oct. 1 so they can match people with insurance programs by Jan. 1, when President Obama’s health-care overhaul is scheduled to take effect.
“Much progress has been made, but much remains to be accomplished within a relatively short amount of time,” the GAO said. “CMS’s timelines provide a roadmap to completion; however, factors such as the still-evolving scope of CMS’s required activities in each state and the many activities to be performed — some close to the start of enrollment — suggest a potential for challenges going forward.”
GAO highlights funding for a consumer assistance program known as Navigators has been pushed back two months. Also, plan management in some of the 34 states where the federal government will have play a role in running the exchanges has yet to be laid out, the GAO report says.
But there is some good news. A report issued Wednesday says that at least one type of coverage to be offered in states that are setting up their own exchanges will be less expensive than expected.
“Silver” plans for nonsmoking 40-year-olds, which will be second-lowest on the cost scale in most states, were estimated by the Congressional Budget Office to cost around $433 a month in premiums, but a report from Avalere Health Plans makes it clear that even the most expensive state won’t touch that level. Avalere says the plans will fall between $205 a month in Oregon to $413 a month in Vermont.
Why care about on just these plans? Avalere notes that it’s the silver plans that will be attached to federal subsidies. So, the cheaper the premiums, the less the government will have to distribute to help out.
However, Avalere warns that the CBO’s estimate was for 2016 and rates could potentially reach its estimate, particularly if insurers are initially offering lower rates to attract enrollees. But it alludes to several elements that could keep premiums low. For instance, the sickest patients will be enrolled first and rate increases higher than 10% are subject to rate review.
For more information regarding these insurance rate changes, contact an agent today!
