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Blogger/Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
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One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Tuesday, September 30, 2014

Obamacare Trainwreck: People Having To Pay Back Subsidies | 23,000 In NM Losing Insurance. . .

. . . | Hospitals Charging Upfront People With Higher Deductible Plans

Another day finds ever more Americans being caught in the problems created by Obamacare.

According to The Wall Street Journal, “Hundreds of thousands of Americans face a Tuesday deadline to verify their income and are at risk of losing or having to pay back their federal health-insurance subsidies under the Affordable Care Act. The need for people to pay back the government could become a headache during next year's tax season, when Americans are expected to pay back any subsidies they weren't eligible for.

“The Obama administration has told more than 300,000 individuals who obtained coverage through the federal HealthCare.gov site that they may lose some or all of the subsidies if they don't provide additional income information that jibes with Internal Revenue Service data. That information includes tax returns, wages and tax statements, pay stubs and letters from employers. Hundreds of thousands of people who obtained health coverage through state exchanges also have documentation issues and could potentially be getting subsidies they aren't eligible for. Enrollees whose income changed during the year but didn't update their information could also owe the government if they received larger tax credits than they were entitled to. The owed amounts could total thousands of dollars, health policy experts say.

“‘Most people don't know they even got advance tax credits,’ said Mark Ciaramitaro, vice president, health-care services at tax preparer H&R Block Inc. ‘They are going to be surprised and need to know what just happened, and a lot of people will be frustrated.’ . . .

“In addition to the roughly 300,000 people affected by the income verification, another 115,000 people may lose coverage on Tuesday because they didn't provide requested documents verifying their citizenship or immigration status by a Sept. 5 federal deadline. Collectively, more than 400,000 people who enrolled in health plans using HealthCare.gov have data-matching problems regarding their income or citizenship and immigration status.

“‘There are a lot of people counting on their refund to pay for Christmas charges, and instead they'll be paying back their tax credit,’ said Timothy Jost, a professor of health law at Washington and Lee University.”

Meanwhile, when patients go to get care, another change attributable to Obamacare is making hospitals ask for payments up front, CNNMoney writes today. “Get ready to whip out your credit card before you are wheeled into the operating room or undergo an MRI. Hospitals are increasingly asking patients to pay for procedures either upfront or before they are discharged. That's because Americans are shouldering a greater portion of their health care bills, and medical centers don't want to get stuck with patients that can't pay.

“Starting the cost conversation early is especially important now because patients are facing higher deductibles and larger payments for services. Some are surprised to find out that they have to fork over thousands of dollars before their insurance even kicks in, hospital administrators said. The policies available on the Obamacare exchanges are hastening this trend. Many enrollees are opting for the bronze and silver plans, which often carry deductibles upwards of $5,000 and $2,000, respectively.

“‘The bronze plans are scaring a lot of administrators because the patient liability is so large,’ said Debra Lowe, administrative director of revenue cycle at Ohio State University's Wexner Medical Center. ‘Patients are unaware they have this high deductible.’”

And of course, people across the country are still losing their health plans, despite the president’s repeated promises that if you like you plan, you can keep it. KOAT-TV in Albuquerque, New Mexico, reports, “Some people with Blue Cross Blue Shield of New Mexico are losing their health insurance. The company mailed a letter this past week telling thousands of members their insurance plan would expire in November. Nearly 23,000 New Mexicans received the letter. The letter said that a person's plan does not meet certain requirements of the Affordable Care Act and will be discontinued. Those users will now have to pick another plan.”

In the face of all these negative consequences, it’s pretty jarring to hear the Obama administration and cheerleading Democrats insist that “the Affordable Care Act is working as intended.”

Tags: Obamacare Trainwreck, New Mexico citizens, losing insurance,  hospitals charging upfront To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 2:33 PM - Post Link

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