Senate Finance Committee Ranking Member Sen. Orrin Hatch (R-Utah) recently highlighted issues with the Affordable Care Act and expressed doubt that fixing the healthcare.gov website would address the law’s fundamental flaws.
The Obama Administration’s recent announcement that Americans who have had their health plans canceled due to the healthcare law will be allowed to purchase catastrophic coverage has caused issues, Hatch noted.
“…Already, this decision is causing confusion among insurers,” Hatch said. “It will almost certainly do the same for consumers.”
Hatch also noted that delayed deadlines and last-minute policy changes further confuse insurance companies and consumers.
“…It is nearly impossible for anyone, let alone those with serious medical conditions, to keep track of the ever-changing deadlines the Administration keeps issuing,” Hatch said. “And, with no clarity as to when people should sign up and who they should pay and when, it’s a virtual certainty that many consumers will find themselves uncovered for a period of time through no fault of their own.”
Hatch also expressed concern that the premium subsidy program would be unable to adequately prevent fraud.
“Similar tax subsidy programs – including, for example, the Earned Income Tax Credit – that are paid out before they are verified have improper payment rates as high as 25 percent,” Hatch said.