No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for the 'PlaceboCare' Category

November 26, 2013

NBC News – Employers abandoning “Cadillac” plans due to PlaceboCare’s “Cadillac plan” tax…4 years early

by @ 9:07. Filed under PlaceboCare, Politics - National.

I wonder whether this counts against the 80 million-100 million of those with existing group health insurance plans expected to lose said insurance by the end of 2014:

For 75 million Americans who get their insurance through large companies, the Affordable Care Act is a mixed bag. Experts tell NBC News the new healthcare law is only slightly increasing premiums next year, but causing some companies with the most generous plans to reduce their employees’ benefits.

Aaron Baker, 36, his wife Billie and their two young children are covered under a generous health insurance plan offered by the private Midwestern university where he’s worked for 10 years. When they opened their benefits notice this year, they were pleased to see their $385 premium is only up by four dollars next year. However, they were shocked to discover that instead of covering the first dollar they spend with no deductible, the Baker’s plan now includes a $1,000 deductible and a $2,500 out of pocket maximum. They also will still have small co-pays for services.

According to the enrollment notice, the changes are “to relieve future health plan trend pressure and to put the university in a position to avoid the excise tax that becomes effective in 2018.” The 40 percent excise tax—often called the “Cadillac tax”— is part of Obamacare and is levied on the most generous health plans. It’s designed to bring down overall health costs by making companies and workers more cost-conscious. The thinking is that if consumers have to pay more expenses themselves, through higher deductibles and out-of-pocket expenses, they’ll avoid unnecessary or overly costly procedures. And that is supposed to make care more affordable for everyone.

I have to quibble with NBC’s analysis of the PlaceboCare Cadillac plan tax – it’s designed not to drive down costs, but to ensure that, except for the favored nomenklatura, nobody gets high-quality care. I am frankly surprised that some entities, specifically the non-union shops that are the primary targets, are reacting 4 years early.

That will just make the eventual repeal at the behest of the unions, which by 2017 will be essentially the only places still offering group health insurance, that much more odious.

October 29, 2013

It’s official – Obama administration violating the 9-month-minimum coverage-or-penalty provision of PlaceboCare law

by @ 10:56. Filed under PlaceboCare, Politics - National.

You heard the rumblings here last week about the Obama administration looking into administratively rewriting their signature law one more time to benefit those who can’t use their PlaceboCare exchange website by 2/15/2014. Yesterday, they made it official. From the AP:

The extension — granted for 2014 only — addresses confusion that was created when the administration set the first open enrollment period under the law from Oct. 1-March 31.

The problem was that health insurance coverage typically starts on the first day of a given month, and it takes up to 15 days to process applications. So somebody signing up March 16 — well within the open enrollment period — wouldn’t get coverage until April 1, thereby risking a penalty for being uninsured part of the year.

While there is a limited authority for HHS Secretary Kathleen Sebelius to grant individual waivers from the ta…er…penalty, the key word is “limited”. Specifically, that authority extends only to those who have “no affordable qualified health plan available through the Exchange, or the individual’s employer, covering the individual”, or to those covered by the other, specified exemptions from the individual mandate. Mere “glitches” and general failures of the exchange website do not qualify as a complete lack of available plans.

October 24, 2013

PlaceboCare Über Alles, IRS Edition?

by @ 9:05. Filed under PlaceboCare, Politics - National, Taxes.

The IRS choosing to implement its portions of PlaceboCare fully as its top priority during the 17% Shutdown instead of ensuring it could start receiving individual income tax returns on-time next year is the charge House Ways and Means Chair Dave Camp (R-MI) leveled after the IRS announced that it will not be starting the Tax Year 2013 filing season on-time. Camp noted that the prior tax season, the IRS managed to start accepting tax returns on-time even though there were wholesale changes approved by Congress in December 2012, though my memory says it was delayed by a couple days.

The IRS counter-claimed that they were in the middle of building a new system for the Tax Year 2013 filing season when they were forced to prioritize. One can only hope that they didn’t choose the 404Care Exchange designers for that.

The significance of the delay is those big spenders who budgeted for a big income tax refund check to arrive February 2014 (an aside – that is perhaps the stupidest financial decision one can make) won’t get one.

October 23, 2013

Broken website? We’ll just break the law (again).

by @ 19:36. Filed under PlaceboCare, Politics - National.

Unless you’ve been in a cave watching NBCCBSABCCNNPMSDNC or reading the NYTWaPoLATUSATodayYourLocalPaintcatcher, you know that we’ve entered the third week of EPIC FAIL of PlaceboCare’s exchange website. Not two weeks after they torpedoed the GOP’s “fallback” position of a 1-year delay in the individual mandate to buy PlaceboCare “coverage”, Democrats have started calling for a “delay” until the exchanges are actually up and running, a process that likely will take months.

The early response from Team SCOAMT:

Before I continue, I need to explain a couple things. Health insurance is sold by the month, with coverage beginning on the first day of a month. In order to get coverage for the following month, one must complete the application process 2 weeks prior to the month.

There is a ta…er…penalty for not having PlaceboCare “coverage” (the greater of $95 or 1% of one’s adjusted gross income for 2014, payable when one files one’s 2014 income tax return in winter/spring 2015), with a 2-consecutive-month grace period for non-“coverage”. That means, at least according to the state of law when the sun rose this morning, one had to complete their PlaceboCare exchange application by February 15 to get coverage for March and thus not pay at least 3 months’ worth of ta…er…penalty. Since PlaceboCare’s 2014 open-enrollment period ends on March 31, that is the last day one can avoid paying the full 2014 ta…er…penalty, but one would still be liable for 4 months’ worth of the ta…er…penalty because they wouldn’t have “coverage” until May 1.

Now, I can continue. There was some confusion on whether the “6-week delay” would be an extension of the PlaceboCare open-enrollment period until mid-May or an increase in the “grace” period described above. I’ll let Phillip Klein explain why administratively extending the administratively-set end of the open-enrollment period is illegal.

NBC News later clarified what Team SCOAMT was talking about:

As the law stands now, individuals are expected to begin the application process via HealthCare.gov by Feb. 15 to avoid a financial penalty. But under the prospective change, individuals will be expected to have started enrollment by March to avoid incurring the penalty.

It figures that they would go with the more-blatantly-illegal route. 26 USC § 5000A (e) (4) specifically proscribes the exemption from the ta…er…penalty for those with “short coverage gaps”:

(4) Months during short coverage gaps

(A) In general
Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months.

(B) Special rules
For purposes of applying this paragraph—

(i)the length of a continuous period shall be determined without regard to the calendar years in which months in such period occur,

(ii)if a continuous period is greater than the period allowed under subparagraph (A), no exception shall be provided under this paragraph for any month in the period, and

(iii)if there is more than 1 continuous period described in subparagraph (A) covering months in a calendar year, the exception provided by this paragraph shall only apply to months in the first of such periods.
The Secretary shall prescribe rules for the collection of the penalty imposed by this section in cases where continuous periods include months in more than 1 taxable year.

In short, the United States Code, which prior to Teh SCOAMT’s ascension to the Oval Office, trumped administrative decisions, mandates that those without PlaceboCare “coverage” for more than 2 months must be ta…er…penalized. Of course, in the ObamiNation, Teh Royal Team SCOAMT decrees override any and all laws or provisions of the Constitution.

October 14, 2013

Office of the Commissoner of Insurance – “Fewer than 50” Wisconsinites signed up for PlaceboCare

by @ 13:31. Filed under PlaceboCare.

The MacIver News Service reports that the Office of the Commissioner of Insurance, which is still titularly in charge of regulating even health insurance in Wisconsin, called up each of the 13 insurance companies that have coughed up a fee to be on the still-broken PlaceboCare individual insurance exchange, and found that fewer than 50 people signed up for PlaceboCare through the exchange.

A bonus item from the piece – only half of the insurance companies offering individual plans, and fewer than a third of those offering small-business group plans, paid the fee to get listed on their respective exchanges.

October 10, 2013

How many people would have avoided PlaceboCare’s tax had the exchanges worked 100% from Day One?

by @ 8:11. Filed under PlaceboCare, Politics - National, Taxes.

(H/T – Hot Air commenter MobileVideoEngineer)

3,800,000 according to DNC Chair (and Congresswoman) Debbie Wasserman-Schultz (D-FL). That’s right – the PlaceboCare exchange website was designed to handle a grand total of 50,000 people per day. There are 76 days, including weekends and holidays, between October 1 and December 15, the last day to sign up for PlaceboCare to be covered starting in January and thus not taxe…er…fined for not having PlaceboCare coverage.

No wonder why the IRS is saying the PlaceboCare exchanges are going “as planned”. They stand to get a rather-substantial ill-gotten windfall.

Revisions/extensions (8:15 10/10/2013) – I forgot to mention that, just like every other Rat-introduced health-related spending disaster, the PlaceboCare exchanges busted the budget by orders of magnitude. It was supposed to cost $94 million; instead, the cost is $634 million and counting.

R&E part 2 (18:20 10/10/2013) – It’s supposedly 50,000 at a time, not per day. Of course, that’s less than half the capacity of the GOP’s Medicare drug benefit expansion, which if memory serves was also available through snail mail.

October 2, 2013

The PlaceboCare national hotline number is…

by @ 19:41. Filed under PlaceboCare, Politics - National.

1-800-F1UCK YOU (or for those of you who can’t spell on a phone handset, 1-800-318-2596, with the 8-for-U not necessary).

What, were 1-800-382-5968 (FUCK-YOU), 1-800-358-5936 (FLUKE YOU, courtesy Myron Falwell in the comments section of Duane Patterson’s piece), and all the 888/877/866/855 variations of those two taken? Then again, Fluke does rhyme with fuck, so HHS might be counting on the low-information voters needing to L33T-spell phonetically.

October 1, 2013

Abele dumping county employees onto PlaceboCare?

Just a quick catch-up note or two; I’m BAAAAAACK! Also, a lengthier version of this was posted at Hot Air’s Green Room. You can thank (or curse, as the case may be), Ed later.

The Milwaukee Journal Sentinel is reporting Milwaukee County Executive Chris Abele is including a proposal to dump all 4,400 county employees onto PlaceboCare, offering a “tax-neutral subsidy” to buy insurance on the exchanges. He claims that providing “subsidies”, really pay increases so he doesn’t have to go hat in hand to the Obama administration for the same exemption from the no-employer-subsidy law Congress got, for the employees to purchase insurance on the PlaceboCare exchanges will save the county $10 million per year. Even though the county is expecting to otherwise pay UnitedHealthCare nearly $14,000 per employee next year, I somehow doubt the math will work to that extent. After all, the not-exactly-functional exchanges will charge Wisconsinites some of the highest premiums in the country, with the “silver” plan having a Milwaukee-area retail (i.e. pre-subsidy) price of just over $11,000 per year for a family of 4. There are also open questions of whether units of government will be charged the $3,000 per employee tax fine other large employers not offering health insurance will eventually be charged and whether, to make it tax-”neutral”, the county can offer “pre-tax” dollars.

Even though earlier rumblings out of the Board had been negative toward this idea when it was merely a rumor floating around the courthouse, Board Chair Marina Dimitrijevic was quoted by the Milwaukee Journal Sentinel as saying she was “always interested in studying ideas that could expand health care options and produce savings.” That suggests that the Board might be on board this idea.

This is all possible without much fear of a union backlash because of 2011’s Act 10, which allows units of government in Wisconsin to dictate the terms of non-wage compensation to unions, just as they had to non-union employees. I know I’ve seen stories of other local governments nationwide at least threatening to end employer-provided health coverage, but I cannot remember what I’ve done with the links to the stories. Of note, the FY2014-FY2015 state budget did not take health insurance benefits away from state employees even though most of the same Republicans who passed Act 10 passed that budget.

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