Post-Shutdown Bill Leaves ACA Intact

Two weeks ago, our federal government shutdown on the promise by House Republicans that they would continue to fund the government only if the ACA was repealed. However, the final, bipartisan agreement reached yesterday that brought the federal government shutdown to a close left the ACA fully intact.  Infact, the bill that the President signed into law included just one, relatively small, ACA provision: The legislation calls for new procedures by which HHS must strengthen income verification for individuals applying for federal tax subsidies to help pay for premiums of health plans purchased on the insurance exchanges. 

                                                       

Under the rule, HHS still would require applicants' income be verified against their IRS and Social Security records, and when that cannot be achieved, checked against employer records submitted to Equifax. The rule also allows state exchanges to check a statistically valid sample of applicants in cases where an applicant claims income more than 10% below what IRS and Social Security records show, and where there is no Equifax data ("The Economy Hub," Los Angeles Times, 10/16). 

Despite two weeks of intensive, 24/7 repairs, healthcare.gov remains badly broken.  This is especially problematic for states whose have chosen to let the federal government run their exchanges.  Many media outlets have also reported that the technical glitches associated with open enrollment for state health exchanges may have received more attention if not for the shutdown.  Perhaps now that the government has re-opened for business, the ACA will see the triumphant roll-out many supporters predicted.

UPS Drops Spousal Healthcare Coverage, Cites ACA

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The United Parcel Service (UPS) announced plans to drop 15,000 employee spouses from its healthcare plan.  UPS said "rising medical costs, 'combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to provide the same level of health care benefits to our employees at an affordable cost.'" (Washington Times, 8/22.)  UPS spokesman Andy McGowan says the company expects the move to save $60 million a year.

CNBC notes that according to a recent Towers Watson survey, "mid- to large-sized companies overwhelmingly expect health-care costs to increase under Obamacare--and most are eyeing possible changes to their health insurance offerings because of a looming excise tax for pricier plans under the health-care reform law."  In fact, the survey revealed that 40 percent of the 400+ companies surveyed said they will be changing the design of their insurance plans in 2014.  Nearly 60 percent of those companies see the state health insurance Marketplaces as a possible way to control costs by shifting the work of insuring their employees onto the Marketplaces in the future.

In response to the UPS announcement, FedEx Corp. "isn't travelling the same route as delivery competitor UPS when it comes to trying to cut out health benefits for spouses and other family members. (Pittsburgh Business Times, 8/22.)