Obama administration proposes new rule that has sparked controversy
The Obama administration has made a very controversial move that has renewed the criticism surrounding federal health care reform. Late last week, the President proposed a new rule that would increase the bailout protection that insurance companies have through health insurance exchanges. The rule is designed to provide insurers with more financial security as the country adapts to the changes that health care reform has introduced to the insurance market.
Those opposing the new rule suggest that it is illegal
The move has generated controversy because it is being seen as the President taking action to change the Affordable Care Law itself, which he does not have the constitutional authority to do. According to the federal health care law, insurers can receive financial support if they were certain to lose money through providing low-cost, high-benefit insurance plans through exchanges. Insurers had been expecting to see losses since law was passed in 2010 due to the fact that they are being required by federal law to provide coverage for a long list of issues.
Rule would provide insurers with greater bailouts in case of financial problems
The bailout rule introduced by the Obama administration has begun receiving criticism because it does not set a limit on the amount of money that insurers can be given through the provision itself. This is being seen as a major failing of the health care reform law as the money that insurers would receive would come from taxpayers. The provision is meant, however, to provide insurers with a sense of financial security in order to incentivize their participation in state insurance exchanges. In most states, insurers are not required to participate in these exchanges.
Health care law expected to continue causing controversy well into the future
Health care reform has been a controversial issue for several years and the issue itself has become highly politicized. While the Affordable Care Act has made insurance coverage more accessible to a wider range of people throughout the U.S., it has also divided the nation in terms of public opinion. The law has many opponents and supporters throughout the country and will likely remain a controversial issue well into the future.