Friday, January 18, 2013

Fwd: qotd: ACA administrative costs escalating

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-------- Original Message --------
Subject: qotd: ACA administrative costs escalating
Date: Fri, 18 Jan 2013 10:39:18 -0800
From: Don McCanne <>
To: Quote-of-the-Day <>

Los Angeles Times
January 18, 2013
State's health insurance exchange gets $674-million federal grant
By Chad Terhune

Federal officials awarded California's new health insurance exchange a
$674-million grant, providing money for a crucial marketing campaign
aimed at millions of uninsured consumers.

The state-run insurance exchange, Covered California, is seeking to
fundamentally reshape the health insurance market by negotiating with
insurers for the best rates and helping consumers choose a plan.

In addition to "top down" advertising, Lee said, the exchange will be
giving grants to religious groups and other community organizations for
education at the grass-roots level.

The exchange also has the task of helping millions of Californians
determine whether they qualify for an expansion of Medi-Cal, the state's
Medicaid program for the poor, or federally subsidized private coverage.

In addition to marketing, Covered California will use the federal grant
money to help fund operations through January 2015, when the online
marketplace will rely on fees assessed on health policies sold through
the exchange.

Separately Thursday, the California Endowment said it would spend $225
million over the next four years to help implement the federal
healthcare law in the state.,0,5154422.story

Comment: The administrative waste in our health care system far exceeds
that of any other nation. During the political process of crafting the
Affordable Care Act, we warned that this model would greatly add to this
administrative waste. We are now beginning to see the extent of that
expanded waste.

On just California's insurance exchange alone, taxpayers are having to
foot additional costs of two-thirds of a billion dollars just for
administration and marketing of the exchange plans. In the future, these
additional administrative costs will be downloaded to us through new
fees assessed on the health policies sold through the exchange. Just
think of all of the other administrative expenses for the multitude of
other features of the Affordable Care Act, not just in California but
throughout the nation. And not one cent of this additional
administrative spending goes to health care. Sick!

Although taxpayers have already invested way too much in this wasteful
program, we can still cut our losses and move on with an
administratively efficient single payer system - an improved Medicare
for all.

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