Administration Finalizes Rules for States to Opt Out of Obamacare

Wednesday, 22 Feb 2012 12:41 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

States such as Vermont will be able to use an escape clause in U.S. rules issued today to set up their own government-run medical systems and avoid federal mandates in the 2010 healthcare law.

The rules allow states to dodge provisions that have sparked debate, such as a mandate that most Americans purchase insurance, if they match or exceed the law’s expansion of healthcare coverage and maintain consumer protections.

President Barack Obama’s administration proposed rules in March outlining how states would apply to get out of the law. Final rules issued today contain only one significant change: a requirement that states submit time lines for implementation of their proposed replacement plans.

Democratic Vermont Gov. Peter Shumlin has said that he plans for the state to insure all of its residents, creating a single-payer system that would put private health plans such as those run by Cigna Inc. out of business. Oregon’s governor, John Kitzhaber, also a Democrat, has said he wants his state to run a health plan that would compete with private insurers.

The clause “provides states with additional flexibility to improve healthcare for their citizens in a way that works for them while retaining the basic protections” of the federal law, the U.S. Department of Health and Human Services said.

The law requires states to set up new marketplaces called exchanges to sell private insurance at subsidized rates beginning in 2014. It allows states opt out of the exchanges in 2017, if they come up with a replacement plan that will cover as many people at no greater cost.

Democratic senators from Vermont, Oregon, and Massachusetts have proposed legislation that would let states opt out of the health law in 2014, when the exchanges are due to open, instead of 2017. The Obama administration supports the change.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Atlanta US Attorney Yates Tapped for Deputy AG

Sunday, 21 Dec 2014 17:46 PM

President Barack Obama is preparing to nominate the top federal prosecutor in Atlanta to the No. 2 position at the Justi . . .

Pataki: Obama to Blame for US Troubles Abroad

Sunday, 21 Dec 2014 16:54 PM

President Barack Obama's "lead-from-behind" strategy is to blame for most of America's problems abroad, former New York  . . .

Variety's Wallenstein: How Obama Took Sony's Crisis From Bad to Worse

Sunday, 21 Dec 2014 15:53 PM

If there are such things as textbooks in the field of crisis management, the Sony Pictures hack might end up in the chap . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved