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Archive for February, 2012

ObamaCare Tramples on Religious Rights

Friday, February 10th, 2012

ObamaCareIf you’ve been watching the news lately, you’ve probably heard that the Health and Human Services Department enacted a measure requiring nearly all insurance plans to cover contraceptive and sterilization methods, including the morning-after pill.

There are certain exceptions for religious groups, but in this case, the government outlined what constitutes a religious group. According to The Wall Street Journal, “the HHS chose to draw the rule’s conscience exceptions for ‘religious employers’ so narrowly that they will not be extended to religious charities, universities, schools, hospitals, soup kitchens, homeless shelters and other institutions that oppose contraception as a matter of religious belief.”

For most, this isn’t a birth control issue. It’s an issue of the government overstepping its bounds and placing mandates on private organizations – something we’ve become too accustomed to under Obama’s presidency. Most health insurance companies and employers already offer coverage for contraceptives and birth control pills. They do this of their own volition. But some organizations, including certain religious groups and employers, choose not to cover birth control. As private organizations, this is their right and is covered under the First Amendment. You know – the most important amendment to our nation’s Constitution.

The over-arching reach of the Affordable Care Act has already instated compulsory coverage mandates on individuals and profit limits on health insurance companies. The abuse of power and infringement on personal liberties is a slippery slope. Where will it end? The WSJ sums up its thoughts with this –

“When politics determines who can or should receive what benefits, and who pays what for it, government will use its force to dictate the outcomes that it wants—either for reasons of cost, or to promote its values, which in this case means that “women’s health” trumps religious conscience… Religious liberty won’t be protected from the entitlement state until ObamaCare is repealed.”

Federal Government Denies Texas Health Insurance Waiver

Wednesday, February 1st, 2012

affordable texas health insuranceHere’s some news on the Texas health insurance front. Texas had applied for a waiver that would exclude it from the federal government’s law that imposes limits on overhead spending by health insurers. The law in question applies to the Medical Loss Ratio and was instated as part of ObamaCare.

Basically, the federal law mandates that health insurance companies “must spend a minimum of 80 percent of their revenue on payments for policyholders’ health care or improvement to their health coverage plans.” This might sound okay on the surface – more money going toward individual’s health care, and less money going toward executive salaries and overhead. But in reality, “overhead” also includes necessary and important items like employee training, education and liaising with doctor’s to better understand issues related to health. So by mandating an 80/20 medical loss ratio, the government is effectually limiting a health insurance carrier’s ability to perform actions that positively affect not only the company, but the consumer.

The consequence for spending more than 20 percent on such costs is a requirement to provide customers with rebates beginning in 2012. Texas was denied its waiver request because, according to officials from the U.S. Department of Health and Human Services, the state was unable to “prove that there would be destabilization of their insurance marketplace if it complied with this new regulation.”

As a result, it’s possible that Texas health insurance companies will be forced to pay out rebates worth $476 million to policyholders over the next three years.

Again, this sounds positive for consumers. But we’re not convinced that federal mandates are in the long term best interest of the people. By limiting health insurance carriers’ overhead costs, we can expect to see good programs like education and privacy protection reduced, since the law kills a carrier’s incentive to invest in such programs. The short sighted law requires health insurance companies to make business decisions based on federal regulations, rather than what’s best for consumers.