Implementation of the Affordable Care Act––More Evidence That Rate Shock is Coming

The Society of Actuaries is out with another estimate of health insurance rate increases as a result of implementation of the Affordable Care Act ("Obamacare").

While there is a great deal of difference between states, they are estimating an average increase of 31.5% on account of the new underwriting reform and benefit expansion requirements of the health law:

These rate increase projections by the Society do not include the big jumps that are coming for younger people driven by the laws requirement that age bands be narrowed so that older people pay no more than three times the premiums of the youngest. The combination of these baseline increases will about double the cost of health insurance for those in their 20s and early 30s––and perhaps decrease costs for those in their late 50s and 60s––in the majority of states that haven't already narrowed these age-related costs.

On this blog back in December, I predicted the same thing given the industry conversations I was having with those inside the companies tasked with calculating the new rates:

On average, expect a 30% to 40% increase in the baseline cost of individual health insurance to account for the new premium taxes, reinsurance costs, benefit mandate increases, and underwriting reforms. Those increases can come in the form of outright price increases or bigger deductibles and co-pays. 

At that time, I also pointed out that such increases would be way more than was first estimated when the law passed the Congress:

In a November 2009 report, the CBO estimated that premiums in the individual market would increase 10% to 13% on account of the health insurance requirements in the ACA. In the under 50-employee small group market, the CBO estimated that premiums would increase by 1% to a decrease of just 2% compared to what they would have been without the ACA. All of these differences in premium would be before income based federal subsidies are applied to anyone's premiums.

Defenders of the Affordable Care Act, including the administration, have been quick to point out that these increases won't be felt by those receiving premium subsidies––likely 60% of consumers.

That is right.

But, most of the cost of the Affordable Care Act is the cost of the coming health insurance subsidies––the Medicaid expansion is the other big part. So the federal government, that will pay the excess premium on account of those getting subsidies, will feel the impact of these big rate increases. Santa Claus is not going to be paying these higher subsidized premiums––federal taxpayers will be. Given that the CBO initially said the increase would only be about a third of what is coming, I have to question the original cost estimate for the new law.

That said, the 40% of consumers who will not be eligible for subsides are going to see some very high prices. Existing individual and small group customers, particularly those not in "grandfathered" plans are going to be shocked by what will happen to their premiums come January 1 in the vast majority of states.

The law also allows insurers to surcharge smokers' premiums by another 50%.

It is interesting to watch the most strident of the new law's supporters trying to spin the growing and overwhelming evidence of what is coming. The spin ends on October 1 when the promised new health insurance exchanges are scheduled to launch with the new health insurance offerings and their prices.

Readers of this blog likely saw my other post this week calling attention to a survey of health insurance industry insiders working with the new exchanges exhibiting little confidence the exchanges will launch smoothly.

"Obamacare" supporters in denial had better get ready for reality.

This is all shaping up to be a tough launch.

I told them not to call if the Affordable Care Act.

Recent post:
Six Months to Go –– Will the Health Insurance Exchanges Be Ready on Time? Survey: Health Plan Execs Don't Think So

View the original article here

Top IRS Official For Obamacare Implementation Placed On Administrative Leave

WASHINGTON — The IRS has put a top official in charge of implementing Obamacare on administrative leave after it was discovered he had accepted $1,162 in free food and other items during a 2010 conference.

In a statement, the IRS confirmed that two employees have been placed on administrative leave — which is paid — and have begun the process of removing them.

“[Acting IRS Director] Danny Werfel learned of the situation last night and immediately asked his leadership team to take action. He has also been in contact with key congressional committees about the situation,” the service said in the statement.

“When I came to IRS, part of my job was to hold people accountable,” Werfel said. “There was clearly inappropriate behavior involved in this situation, and immediate action is needed.”

The IRS informed congressional staff investigating the agency that Fred Schindler had been put on leave for accepting the gifts. A second unnamed staffer in the division was also put on leave for accepting the gifts, the aides said.

According to congressional sources, the food was provided by an event planner organizing the conference during an “after hours” party. One source says the incident was referred to the Department of Justice for possible prosecution but it was not acted upon.

An IRS spokesman declined to comment on whether the issue was sent to DOJ.

Schindler is the deputy for Sarah Hall Ingram, who is heading up implementation of the Affordable Care Act for the IRS. Ingram has come under scrutiny recently because she oversaw the division of the IRS which targeted conservative organizations seeking nonprofit status.

According to congressional sources, the suspensions appear to be the first examples of employees being punished as part of a separate scandal over the service’s spending on conferences. One congressional source said it also appears the free meals and gifts were accepted at the same 2010 conference during which participants filmed a Star Trek spoof video.

House Oversight and Government Reform Chairman Darrell Issa is scheduled to hold a hearing on conference spending by the IRS Thursday.

View the original article here

Implementation of the Affordable Care Act––More Evidence That Rate Shock is Coming

The Society of Actuaries is out with another estimate of health insurance rate increases as a result of implementation of the Affordable Care Act ("Obamacare").

While there is a great deal of difference between states, they are estimating an average increase of 31.5% on account of the new underwriting reform and benefit expansion requirements of the health law:

These rate increase projections by the Society do not include the big jumps that are coming for younger people driven by the laws requirement that age bands be narrowed so that older people pay no more than three times the premiums of the youngest. The combination of these baseline increases will about double the cost of health insurance for those in their 20s and early 30s––and perhaps decrease costs for those in their late 50s and 60s––in the majority of states that haven't already narrowed these age-related costs.

On this blog back in December, I predicted the same thing given the industry conversations I was having with those inside the companies tasked with calculating the new rates:

On average, expect a 30% to 40% increase in the baseline cost of individual health insurance to account for the new premium taxes, reinsurance costs, benefit mandate increases, and underwriting reforms. Those increases can come in the form of outright price increases or bigger deductibles and co-pays. 

At that time, I also pointed out that such increases would be way more than was first estimated when the law passed the Congress:

In a November 2009 report, the CBO estimated that premiums in the individual market would increase 10% to 13% on account of the health insurance requirements in the ACA. In the under 50-employee small group market, the CBO estimated that premiums would increase by 1% to a decrease of just 2% compared to what they would have been without the ACA. All of these differences in premium would be before income based federal subsidies are applied to anyone's premiums.

Defenders of the Affordable Care Act, including the administration, have been quick to point out that these increases won't be felt by those receiving premium subsidies––likely 60% of consumers.

That is right.

But, most of the cost of the Affordable Care Act is the cost of the coming health insurance subsidies––the Medicaid expansion is the other big part. So the federal government, that will pay the excess premium on account of those getting subsidies, will feel the impact of these big rate increases. Santa Claus is not going to be paying these higher subsidized premiums––federal taxpayers will be. Given that the CBO initially said the increase would only be about a third of what is coming, I have to question the original cost estimate for the new law.

That said, the 40% of consumers who will not be eligible for subsides are going to see some very high prices. Existing individual and small group customers, particularly those not in "grandfathered" plans are going to be shocked by what will happen to their premiums come January 1 in the vast majority of states.

The law also allows insurers to surcharge smokers' premiums by another 50%.

It is interesting to watch the most strident of the new law's supporters trying to spin the growing and overwhelming evidence of what is coming. The spin ends on October 1 when the promised new health insurance exchanges are scheduled to launch with the new health insurance offerings and their prices.

Readers of this blog likely saw my other post this week calling attention to a survey of health insurance industry insiders working with the new exchanges exhibiting little confidence the exchanges will launch smoothly.

"Obamacare" supporters in denial had better get ready for reality.

This is all shaping up to be a tough launch.

I told them not to call if the Affordable Care Act.

Recent post:
Six Months to Go –– Will the Health Insurance Exchanges Be Ready on Time? Survey: Health Plan Execs Don't Think So

View the original article here

Fact Sheet: Implementation of Export Control Reform

Fact Sheet: Implementation of Export Control Reform | The White House Skip to main content | Skip to footer site map The White House. President Barack Obama Get Email UpdatesContact Us Go to homepage. The White House Blog Photos & Videos Photo Galleries Video Performances Live Streams Podcasts 2012: A Year in Photos

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For Immediate Release March 08, 2013 Fact Sheet: Implementation of Export Control Reform

Today, the Administration announced two key steps to further the goals of President Obama’s Export Control Reform Initiative, which is a common sense approach to overhauling the nation’s export control system.  President Obama signed an Executive Order today to update delegated presidential authorities over the administration of certain export and import controls under the Arms Export Control Act of 1976, and yesterday the Administration notified Congress of the first in a series of changes to the U.S. Munitions List.

Executive Order

Executive Order 11958 delegated authority to control exports of defense articles and services to the Secretary of State and delegated the comparable authority to control imports to the Secretary of the Treasury.  The Department of State controls the export of defense articles and services on its U.S. Munitions List (USML); the Department of Justice controls their import pursuant to the U.S. Munitions Import List (USMIL) administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  The USMIL was previously a subset of State’s USML.  The most recent comprehensive delegation of these authorities was in Executive Order 11958 of January 18, 1977.  The President’s new Executive Order updates delegated authorities consistent with the upcoming changes to our export control lists.  It supersedes and replaces Executive Order 11958 and amends Executive Order 13222 of August 17, 2001, that pertains to the Department of Commerce-administered controls.  The new Executive Order makes the following changes:

Consolidation of All Brokering Responsibilities with the Department of State:  The Arms Export Control Act requires the registration and licensing of brokering activities for defense articles and services for both exports and imports.  A broker is a person who acts as an agent for others in negotiating or arranging contracts, purchases, sales or transfers of defense articles or services.  The Executive Order consolidates and delegates to the Secretary of State all statutory responsibility for maintaining registration and licensing requirements for brokering of defense articles and services on either the State or ATF lists which both control defense articles and services under the Arms Export Control Act.  This one-stop approach provides better clarity for the defense trade community and makes it easier for industry to comply and for the U.S. Government to enforce.

Elimination of Possible “Double Licensing” Requirements:  Today the Department of State licenses entire systems, including any accompanying spare parts, accessories, and attachments, yet many of these items will be moved to the Commerce list which may mean that an exporter would need two licenses instead of one.  The President’s delegation, via an amendment to Executive Order 13222, will allow the Department of State to authorize those accompanying items that may have moved to the Commerce list and prevent any potential double-licensing requirement.  This ensures that the prioritization of our controls, in which we facilitate secure trade with Allies and partners, does not add new red tape.  Items licensed or otherwise approved by the Secretary of State under this delegation remain subject to the jurisdiction of the Department of Commerce, including for enforcement purposes.

Congressional Notification Process:  The President has directed that the Department of Commerce establish procedures for notifying Congress of approved export licenses for a certain subset of items that are moved or that may move from the State list to the Commerce list.  A key feature of the President’s reform initiative is to enhance transparency with Congress and the public in the administration of our export control system.  This Executive Order ensures that, going forward, the Executive Branch will continue this transparency and notify Congress about export licenses for those certain items that, while no longer subject to the statutory notification requirements of the Arms Export Control Act, warrant continued transparency and notification to Congress.

Other Administrative Updates:  The Executive Order delegates to the Attorney General the functions previously assigned by Executive Order 11958 to the Secretary of the Treasury, reflecting the 2003 move of ATF to the Department of Justice from the Treasury (accommodated by Executive Order 13284).  It also makes a number of other necessary updates to ensure that the authorities to administer our export control system are current.

Changes to the U.S. Munitions List

The cornerstone of the President’s Export Control Reform Initiative is the rebuilding of the two primary export controls lists, State’s USML and the Department of Commerce’s Commerce Control List (CCL) which primarily controls dual-use items, i.e., commercial items with possible military applications, and some military items of lesser sensitivity.  By law, everything on the USML is controlled equally, whether an F-18 fighter or a bolt that has been modified for use on that F-18, and each of these items requires an individual license.  This system has created significant obstacles and delays in providing equipment to Allies and partners for interoperability with U.S. forces in places like Afghanistan, and harms the health and competitiveness of the U.S. industrial base. Rebuilding our export control lists and moving less sensitive items from the State to the Commerce list will provide us the flexibility to more efficiently equip and maintain our partner’s capabilities while allowing us to focus on preventing potential adversaries from acquiring military items that they could use against us.

The Administration notified Congress yesterday of the first in a series of changes to the USML, as required by Section 38(f) of the Arms Export Control Act.  Once the Congressional notification period concludes, these changes -- to current Department of State- administered controls on Aircraft and Gas Turbine Engines -- will be published, with an effective date of 180 days after publication.  The revised USML will enable the United States to better focus its resources on items that deserve the highest levels of export protection and on destinations of concern, while providing American companies with a streamlined export authorization process for thousands of parts and components. The remaining USML changes will be published on a rolling basis throughout 2013, and ultimately will update every category of defense articles to better meet current national security and economic challenges. These actions will improve our national security by better utilizing our export licensing and enforcement resources to focus on those items, destinations, and end-uses of greatest concern, improve interoperability with Allies and partners, and bolster the U.S. defense industrial base.  To follow developments in the President’s Export Control Reform Initiative, visit www.export.gov/ecr/.

Blog posts on this issue March 09, 2013 5:45 AM ESTWeekly Address: End the Sequester to Keep Growing the Economy

In his weekly address, President Obama says that businesses have created jobs every month for three years straight – nearly 6.4 million altogether, and have added 246,000 new jobs in February. We must keep this momentum going, and that’s why the President recently met with Republican leaders to discuss how we can replace the harmful, arbitrary budget cuts, called the “sequester,” with balanced deficit reduction.

March 08, 2013 6:33 PM ESTFirst Lady Michelle Obama and Secretary of State John Kerry Present International Women of Courage Awards

Mrs. Obama and Sec. Kerry celebrate International Women's Day by honoring nine extraordinary women.

March 08, 2013 5:55 PM ESTEmpowering All Women to Reach Their Full Potential

President Obama has made promoting gender equality and advancing the status of women and girls central to our foreign policy and national security strategy, including by leading by example at home.

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One-Year Update on the Implementation of the National Strategy for Global Supply Chain Security

One-Year Update on the Implementation of the National Strategy for Global Supply Chain Security | The White House Skip to main content | Skip to footer site map The White House. President Barack Obama Get Email UpdatesContact Us Go to homepage. The White House Blog Photos & Videos Photo Galleries Video Performances Live Streams Podcasts 2012: A Year in Photos

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Browse White House visitor logs

Issues Civil Rights It Gets Better Defense End of Iraq War Disabilities Economy Jobs Reform and Fiscal Responsibility Strengthening the Middle Class A Plan for Refinancing Support for Business Education Energy & Environment Ethics Foreign Policy Health Care Homeland Security Immigration Immigration Reform Taxes Tax Receipt The Buffett Rule Rural Urban Policy Veterans Joining Forces Technology Seniors & Social Security Service Snapshots Creating Jobs Health Care Small Business PreK-12 Education Women Violence Prevention Now Is The Time

To do something about gun violence

Immigration Reform

Creating an Immigration System for the 21st Century

The Administration We the People

Create and Sign Petitions Now

President Barack Obama Vice President Joe Biden First Lady Michelle Obama Dr. Jill Biden The Cabinet 2010 Video Reports White House Staff Chief of Staff Denis McDonough Deputy Chief of Staff Rob Nabors Deputy Chief of Staff Alyssa Mastromonaco Counselor to the President Peter Rouse Senior Advisor Valerie Jarrett Executive Office of the President Other Advisory Boards About the White House White House On the Go

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2012: A Year in Photos

A unique view of 2012

Inside the White House Interactive Tour West Wing Tour Video Series Décor and Art Holidays Presidents First Ladies The Oval Office The Vice President's Residence & Office Eisenhower Executive Office Building Camp David Air Force One White House Fellows President’s Commission About the Fellowship Current Class Staff Bios News and Newsletters White House Internships About Program Presidential Department Descriptions Selection Process Internship Timeline & FAQs Tours & Events 2013 Easter Egg Roll Kitchen Garden Tours Take a Virtual Tour of the White House Mobile Apps Our Government The Executive Branch The Legislative Branch The Judicial Branch The Constitution Federal Agencies & Commissions Elections & Voting State & Local Government Resources /* Maximize height of menu features. */if(typeof(jQuery)!='undefined')jQuery.each($('#topnav'),function(i,v){var o=$(v),oh=o.height(),sh=o.siblings().height();if(oh Home • Briefing Room • Statements & Releases   The White House

Office of the Press Secretary

For Immediate Release March 05, 2013 One-Year Update on the Implementation of the National Strategy for Global Supply Chain Security

The National Strategy for Global Supply Chain Security, released in January 2012, established the U.S. Government’s policy to strengthen the global supply chain to protect the interests of the American people and enhance our Nation’s economic prosperity. 

The Administration, in coordination with private sector stakeholders and foreign government partners, made significant progress in implementing the Strategy throughout 2012 and in defining our priorities for future work.  As required by the Strategy, Federal Departments and Agencies prepared a consolidated report outlining these efforts and defining 2013 implementation goals.  The public version of this report is available HERE.

Blog posts on this issue March 09, 2013 5:45 AM ESTWeekly Address: End the Sequester to Keep Growing the Economy

In his weekly address, President Obama says that businesses have created jobs every month for three years straight – nearly 6.4 million altogether, and have added 246,000 new jobs in February. We must keep this momentum going, and that’s why the President recently met with Republican leaders to discuss how we can replace the harmful, arbitrary budget cuts, called the “sequester,” with balanced deficit reduction.

March 08, 2013 6:33 PM ESTFirst Lady Michelle Obama and Secretary of State John Kerry Present International Women of Courage Awards

Mrs. Obama and Sec. Kerry celebrate International Women's Day by honoring nine extraordinary women.

March 08, 2013 5:55 PM ESTEmpowering All Women to Reach Their Full Potential

President Obama has made promoting gender equality and advancing the status of women and girls central to our foreign policy and national security strategy, including by leading by example at home.

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Rocky Road Ahead For Implementation Of ObamaCare

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