The federal government has announced that it has not approved Texas’s request for exclusion from a new law that places limitations on allowable amount of overhead spending by health insurers. The law from which Texas wanted to be excluded is one of the changes made in 2010 as a part of the Affordable Care Act for federal health care. Officials in Texas are claiming that this part of the Act is unconstitutional. It is called the medical loss ratio requirement, and it states that health insurance companies must spend a…
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New Jersey working to make deadline for federal grants that would help the state build and insurance exchange
The state of New Jersey has just over six months to finalize plans for a health insurance exchange. The deadline concerns a federal grant that would help the state make progress toward the new insurance system. The grant, worth $5 million, would be used to hire new staff that will maintain the upcoming virtual insurance marketplace. It would also help the state purchase new equipment needed to operate the system and would fund marketing efforts to promote the exchange program. If New Jersey misses the deadline, it may not be…
Read MoreSome states making major progress on insurance exchanges, while others lag behind
Throughout the U.S., progress on setting up health insurance exchanges is accelerating. As of December, 2011, 13 states had fully functional exchange programs. Several other states have legislations pending that would allow for the building of the exchanges. While many states oppose the overarching Affordable Care Act, only Arkansas and Louisiana have chosen not to build insurance exchanges of any kind. According to the law, all states must have an operational exchange program in place by 2014. As of now, 20 states are making major progress toward establishing exchanges. The…
Read MoreWisconsin Governor puts a stop to the state’s progress on establishing a health insurance exchange
Wisconsin Governor Scott Walker has announced that the state will put a halt to its plans to form a health insurance exchange for the time being. Governor Walker claims that further work on an exchange program would be a waste of time if the Supreme Court declares the federal Affordable Care Act unconstitutional. The law requires all states to build a health insurance exchange by 2014. If states fail to meet the deadline, the federal government will take charge and build one itself. Governor Walker’s halting of the program could…
Read MoreSupreme Court may delay ruling on Affordable Care Act until 2015
The Supreme Court is scheduled to begin hearing a case regarding the constitutionality of the 2010 Affordable Care Act on March 26. Many have assumed that the individual insurance mandate provision of the law, which requires all U.S. citizens to have some form of health insurance, would be among the first topics of discussion. The Court, however, has announced that the issue to be discussed will be whether a decision on the constitutionality of the law should be made now or delayed for the future. The Supreme Court may choose…
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