Obamacare exchanges already a logistical nightmare; most states to miss deadlines

Tuesday, June 18, 2013 by: J. D. Heyes
Tags: Obamacare, insurance exchanges, health care costs

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(NaturalNews) For months we here at Natural News have been warning readers that the medical "reform" measure known as Obamacare is a regulatory nightmare that will destroy the U.S. healthcare system and raise its costs astronomically - despite the lies the president and his minions have told to "sell" it to the public.

One of the most egregious aspects of the law is the "health care exchanges" it creates - you know, the ones that were supposed to, according to President Obama, keep insurance rates down and allow you to keep your own doctor. Now, as the full weight of the law is expected to kick in Jan. 1, 2014, it is becoming painfully obvious that these promises, along with all of the other supposed "benefits" of the law, were never made to be kept in the first place.

How do I know that? Because one of the law's architects, retiring Sen. Max Baucus, D-Mont., said as much in April when he declared the law to be a "train wreck" as the administration rushes to implement it.

'The disaster is evolving

Even now Obama simply cannot be truthful about his signature accomplishment. In responding to Baucus' moment of frankness, he said his staff was "pushing very hard to make sure that we're hitting all the deadlines." Well, Mr. President, that certainly isn't the same as actually hitting them, is it? And besides, little of what the law proposed to improve will occur anyway, as a number of independent analyses have projected - both before and after Obamacare passed and was upheld by the U.S. Supreme Court.

Per Forbes magazine:

...[A]n Obamacare train wreck isn't a distant possibility. It's actively happening. Delays, wasteful spending, and cost overruns have already popped up. And it's becoming increasingly likely that the exchanges won't be ready by October 1, when they're supposed to open for enrollment. Mass confusion and excessive costs will result.

Currently the Feds plan on operating exchanges in 27 states and jointly operate exchanges in seven more states. Seventeen states are planning to operate their own exchanges.

Or so it is supposed to go.

The official responsible for the implementation of the Obamacare exchanges, Gary Cohen, said in March that Washington "will likely end up running some of the exchanges in the 17 states that elected to set them up on their own because they won't be ready in time," Forbes reported.

The same problem is likely to occur in states the White House has held up as "pioneers." They, too, have found it difficult to establish a government-mandated and operated marketplace out of thin air.

Over-budget and behind schedule

And of course, the immense bureaucracy that will come with this toad is, in and of itself, nearly inert. Officials charged with creating a insurance exchange application form initially came up with a 15-page document loaded with complications; after being heavily criticized, they pared it back to three pages for individuals and seven for families.

Is money a problem? Well, maybe for a stripped-down Pentagon or White House tour department, but not for Obamacare implementation (surprised?).

"The Department of Health and Human Services (HHS) will have spent $4.4 billion on state exchange grants by the end of this year. That's more than double what the Department said would be necessary just last year, despite the fact that fewer states than the feds anticipated agreed to establish their own exchanges," Forbes reported.

So already this massive new bureaucracy is behind schedule and over-budget. Why would anyone be surprised by that?

Better get healthy now

But the spending spigot isn't dry yet. HHS has requested an additional $1.5 billion to fund exchanges it wants to establish in states that have simply said they won't do so until next year some time. Worse, the department can't even account for all of the grant money it has sent to states because it comes without restrictions, guidelines or accountability.

And so much for "choice." Many of the nation's largest insurance companies are opting out of the exchanges, limiting the kinds of plans and companies that consumers can pick from - which will undoubtedly raise prices. Still think you can "keep your current plan" and "keep your own doctor?"

Welcome to the "new" healthcare norm in the U.S.: A bloated, unaccountable bureaucracy that will waste tens of billions of taxpayer dollars, all the while taking money away from the actual delivery of quality health care.

If there is a better reason to get healthy and stay fit, I can't think of one.

Sources for this article include:




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