Report: Medical device tax missing revenue mark
The Hill
August 19, 2014
http://thehill.com/policy/finance/215522-report-medical-device-tax-missing-revenue-mark
A tax imposed on medical devices included in the Affordable Care Act is raising roughly three-quarters of the revenue originally expected, according to a new government report. The watchdog for the Internal Revenue Service reported Tuesday that the tax collection agency was still facing problems implementing the medical device tax included in the 2010 healthcare reform law. The Treasury Inspector General for Tax Administration (TIGTA) said the IRS needs to continue to tweak its compliance rules for the tax, identifying several mistakes when it came to collecting money owed the government. IRS agents were still having a hard time determining exactly which medical device manufacturers were subject to the tax; both the returns filed and revenue raised have come in well short of expectations.
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Halbig asks appeals court to deny rehearing of subsidies case
Politico
August 19, 2014
http://www.politico.com/politicopulse/0814/politicopulse15053.html
Jacqueline Halbig, who is trying to stop Obamacare subsidies from going to states relying on HealthCare.gov, asked the U.S. Court of Appeals for the D.C. Circuit not to rehear the case. The Obama administration has asked the entire D.C. Circuit to revisit the Halbig case after a three-judge panel ruled against the government last month. Halbig and her lawyers said Monday that an en banc review would only add another layer of complexity to the legal issues of whether subsidies in the health care law can go to residents of any state. Only the Supreme Court can settle the matter, they say. At the very least, the D.C. Circuit should wait to see if SCOTUS accepts a petition from the similar tax subsidy case recently decided in the 4th Circuit, the lawyers wrote.
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With Halbig en banc briefs submitted, now comes the wait
The Washington Post
August 19, 2014
http://www.washingtonpost.com/news/volokh-conspiracy/wp/2014/08/19/with-halbig-en-banc-briefs-submitted-now-comes-the-wait/
On Aug. 1, the federal government filed a petition for rehearing en banc in Halbig v. Burwell, in which the U.S. Court of Appeals for the D.C. Circuit held that the PPACA does not authorize the issuance of tax credits for the purchase of health insurance in exchanges established by the federal government (as opposed to those established by states). On Monday, pursuant to a D.C. Circuit order, the plaintiffs filed their brief in opposition. Whereas the government argued the court should rehear Halbig because the D.C. Circuit opinion conflicts with that of the Fourth Circuit and the case presents a question of “exceptional importance,” the plaintiffs argue that the policy significance of the case actually counsels allowing expeditious resolution of the question by the Supreme Court. As I noted here (see also here), the court rejected en banc review in Coalition for Responsible Regulation v. EPA. In explaining this decision, then-Chief Judge Sentelle (joined by Judges Rogers and Tatel) wrote:
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U.S. benefits enrollment season to bring more cost cutting: study
Reuters
August 13, 2014
http://www.reuters.com/article/2014/08/13/us-usa-health-ngbhsurvey-idUSKBN0GD1B020140813
When benefits enrollment season arrives this fall, employees around the country can expect to see the impact of corporate cost-cutting on their finances. Benefits costs will rise only 5 percent for employers that take certain cost-reduction measures, instead of 6.5 percent for companies that do not, according to a June survey of employers representing 7.5 million workers by the National Business Group on Health. Although costs are not rising as quickly, employees are still being squeezed. The main way companies are keeping healthcare costs in line is by shifting workers into high-deductible health plans, defined by the Internal Revenue Service as having deductibles above $1,250 for an individual. For 2015, 81 percent of employers will offer a high-deductible plan as an option, up from 72 percent last year; while 32 percent will offer such plans as the only option, up from 22 percent last year.
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Large employers see health costs rising 5% next year
Los Angeles Times
August 13, 2014
http://www.latimes.com/business/money/la-fi-employer-health-costs-20140812-story.html
Large employers expect their healthcare costs to jump 5% next year, and nearly a third of businesses will offer only higher-deductible plans to workers, a new survey shows. The annual report released Wednesday by the National Business Group on Health provides a good barometer of what employees at big companies can expect when health plan enrollment opens this fall. But they anticipate holding increases to 5% after making changes to their coverage, such as shifting more medical costs to workers and expanding the use of high-deductible policies. Employers reported a similar 5% increase for 2014. Asked what’s driving up medical spending, employers cited high-cost patients, specific diseases and an uptick in spending for specialty drugs. Only 7% said the cost of complying with the federal Affordable Care Act was a leading factor.
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GAO Recommends Steps to Prevent Duplicative Medicare Payment Reviews
The Hill
August 13, 2014
http://thehill.com/policy/healthcare/215081-report-medicare-agency-not-doing-enough-to-stop-duplicate-audits
Medicare should improve the efficiency of its contractors' postpayment reviews of claims, according to a report released Aug. 13. The Government Accountability Office said the Centers for Medicare & Medicare Services should take steps that include “providing additional oversight and guidance regarding data, duplicative reviews, and contractor correspondence.” The GAO also said in its report (GAO-14-474) that several types of Medicare contractors conduct postpayment claims reviews to help reduce improper payments, adding that “[q]uestions have been raised about their effectiveness and efficiency, and the burden on providers.” The report acknowledged that the CMS has taken steps to prevent contractors from conducting certain duplicative postpayment claims reviews.
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Federal court to hear Indiana’s challenge to Obamacare
Indianapolis Star
August 13, 2014
http://www.indystar.com/story/news/politics/2014/08/13/federal-court-hear-indianas-challenge-obamacare/14026189/
A federal judge will hear arguments in October in Indiana's challenge to the insurance premium subsidies available through the Affordable Care Act. Indiana's challenge is similar to two that have already been heard by other federal courts and that have divided those courts. It affects the more than 100,000 Hoosiers who have bought insurance using the subsidies because they're not covered through an employer or a government program like Medicare. If the challenge is successful, residents in states like Indiana that have deferred to the federal government to run its health exchange will no longer be eligible for the subsidies. The tax credits, available to people who earn between 100 percent and 400 percent of the federal poverty level, have reduced the cost of insurance sold on Indiana's exchange by an average 79 percent. That has made the average premium in Indiana $88 a month, according to the federal government.
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Burwell adds Citigroup exec to inner circle
The Hill
August 13, 2014
http://thehill.com/policy/healthcare/215064-burwell-adds-citigroup-exec-to-inner-circle
Health and Human Services (HHS) Secretary Sylvia Mathews Burwell is poaching another leader from the private sector to serve in her inner circle. Burwell announced Wednesday that Kevin Thurm, formerly of Citigroup, would join the HHS as a senior counselor this summer. The alert followed Burwell's hiring of Wal-Mart's Leslie Dach and Optum's Andy Slavitt for top roles in the department. Both previously served as executive vice presidents and joined the HHS for broad roles coordinating policy. "We’re continuing to build on the strong leadership team that exists at HHS and recruit top talent," Burwell said in a statement Wednesday. Of Thurm, she said, "Kevin’s decades of broad experience spans business and government with the focus necessary to advance our goals. He brings to the department not only his proven abilities as a leader, but also a deeply-held commitment to our mission."
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Survey Says Higher Costs for Health Care Plans
US News & World Report
August 13, 2014
http://www.usnews.com/news/articles/2014/08/13/survey-says-higher-costs-for-health-care-plans
A group representing large companies’ views on health care plans says employee-sponsored packages will likely be more expensive next year. In a survey conducted by the National Business Group on Health, large U.S. employers are expecting a 5 percent increase next year in health care costs. Companies want to control rising costs by offering their workers cost-sharing provisions and offering more consumer-directed health plans. “Employees can expect to see a 5 percent increase on their end as well,” said Brian Marcotte, president and CEO of the National Business Group on Health. “Though 5 percent doesn’t seem like as big an increase as we’ve experienced from years past, it is still a significant increase and significant impact on the bottom line.” Findings made public on Wednesday indicated the key reasons for the increase were high-cost claims, specific disease conditions, and specialty pharmacy. Specialty pharmacy only affects two percent of the population, but includes pricey medications that drive up costs. In June, the forward-looking survey asked 136 large businesses ranging from 10,000 to 100,000 employees – all members of the National Business Group on Health – to report their cost strategies for health care and what they plan to do to control costs in 2015. Consumer driven health plans were the popular option cited in the survey to rein in costs. Eighty-one percent of those polled had at least one consumer driven plan as an option. “It is a way to engage employees to be consumers of healthcare,” said Karen Marlo, vice president of the National Business Group on Health.
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Companies Predict Small 2015 Health Cost Rise -- With A Catch
The Huffington Post
August 13, 2014
http://www.huffingtonpost.com/2014/08/13/employer-health-insurance_n_5673039.html
Large employers expect their health care expenses to rise a modest amount next year, but they plan to continue requiring workers to pay a growing share of the cost of medical care, according to survey findings released Wednesday. The cost of job-based health insurance at big companies will go up 5 percent in 2015, approximately the same as it did the year before, the National Business Group on Health found in a June survey of 136 companies that employ about 7.5 million people. Companies will constrain their health spending by shifting costs onto employees. Employer health care costs would be increasing 6.5 percent absent mechanisms like higher deductibles and other tools that make patients responsible for more of the bills they receive for doctor visits, prescription drugs and the like. Company health plans also more commonly require workers to get prior approval for the most expensive drugs or to try cheaper therapies before costlier ones are allowed, the survey shows.
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About 300,000 to Lose Obamacare Unless Prove Residency
Bloomberg
August 13, 2014
http://www.bloomberg.com/news/2014-08-12/about-300-000-to-lose-obamacare-unless-prove-residency.html
More than 300,000 people who haven’t documented their citizenship or legal residency in the U.S. face a Sept. 5 deadline to prove their eligibility or lose their Obamacare health coverage, the government said. In May, the U.S. said about 1 million people who signed up for private health plans under the Patient Protection and Affordable Care Act lacked proof that they are citizens or legal residents. Since then, about 660,000 have documented their eligibility for the program or are doing so, the Centers for Medicare and Medicaid Services said today in a statement. About 8 million people signed up for plans using new health insurance exchanges by April, when the law’s first enrollment period closed. Those who fail to prove their eligibility will lose coverage on Sept. 30, the government said. “We want as many consumers as possible to remain enrolled in marketplace coverage, so we are giving these individuals a last chance to submit their documents before their coverage through the marketplace will end,” Marilyn Tavenner, the CMS administrator, said in the statement.
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Administration warns some could lose health-care coverage on federal exchange
The Washington Post
August 12, 2014
http://www.washingtonpost.com/national/health-science/administration-warns-some-could-lose-insurance-coverage-on-federal-exchange/2014/08/12/efabd05e-223c-11e4-8593-da634b334390_story.html
Federal health officials are warning hundreds of thousands of people who have bought health plans through the federal insurance exchange that their coverage will be cut off unless they quickly provide proof that their citizenship or immigration status makes them eligible to be insured through the new marketplace. The warnings, in letters being mailed this week to 310,000 people in the three dozen states that rely on the exchange, give the recipients until Sept. 5 to send copies of green cards, citizenship documents or other information showing that they qualify for the coverage. If they miss the deadline, their coverage will end on Sept. 30. This move is the first step the administration has taken to hold consumers accountable when information on their applications conflicts with records on file at federal agencies or is missing altogether. The action, announced Tuesday, will affect only people with lingering eligibility issues involving their citizenship or immigration status. They are included in about 2 million cases of several kinds of application discrepancies involving people who have obtained coverage through the exchange.
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Over 300,000 Must Prove Eligibility or Lose Health Care
The New York Times
August 12, 2014
http://www.nytimes.com/2014/08/13/us/over-300000-must-prove-eligibility-or-lose-health-care.html?_r=0
More than 300,000 people who bought subsidized health insurance under the Affordable Care Act could lose it next month if they do not provide proof that they are living in the United States legally, the Obama administration said Tuesday. The administration has been trying to resolve questions about the eligibility of hundreds of thousands of people who signed up for private health plans through the new insurance exchanges and qualified for federal subsidies to help with the cost. Most of the discrepancies involve citizenship, immigration status or income. About 450,000 cases with discrepancies related to citizenship or immigration status have been resolved, and an additional 210,000 are “in progress,” according to Marilyn B. Tavenner, the administrator of the Centers for Medicare and Medicaid Services, which runs the federal exchange. But about 310,000 people have not responded to calls, letters and emails asking about inconsistencies between citizenship or immigration data on their application forms and government records.
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Feds warn 93,800 Floridians to prove immigration status or lose Obamacare
Miami Herald
August 12, 2014
http://www.miamiherald.com/2014/08/12/4285907/feds-warn-93800-floridians-to.html
Federal health officials are warning almost 94,000 people in Florida that they must prove they are U.S. citizens or legal immigrants in order to remain eligible for insurance under the Affordable Care Act. The targeted consumers are part of a group of 310,000 newly insured people around the country who have not responded to requests from the U.S. Department of Health and Human Services for documents that would establish their claim of legal residency, a condition of eligibility for the tax-supported healthcare marketplaces. Over the past few weeks, HHS officials have used letters, e-mails and telephone calls to ask enrollees to send supporting documents in order to maintain their coverage. A new round of communications is being launched, officials said, and the coverage of policyholders who do not respond by Sept. 5 will expire at the end of September.
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Oracle sues Oregon over botched Obamacare exchange
Los Angeles Times
August 9, 2014
http://www.latimes.com/nation/nationnow/la-na-nn-oracle-oregon-lawsuit-20140809-story.html#page=1
The legal battle over Oregon's dysfunctional health insurance exchange officially began this week when Oracle Corp. sued the state agency operating the exchange, alleging breach of contract and accusing Gov. John Kitzhaber of attempting to systematically "vilify the company in the media." In a 21-page complaint filed Friday in federal court for the District of Oregon, Portland Division, Oracle charges that during the early months of this year, state officials privately continued to request Oracle's help to fix Though Oregon had appeared more prepared than many other states to implement President Obama's Affordable Care Act, technology problems crippled Cover Oregon's online exchange. The web portal where consumers were to purchase health insurance never went live after open enrollment began on Oct. 1. Instead, the state resorted to paper applications to allow Oregonians to access health insurance subsidies through the new federal program
Click here to view a list of last week's news items.
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