Ind. denied waiver for 'Obamacare'

The U.S. Department of Health and Human Services denied Indiana’s application for a waiver for parts of the Patient Protection and Affordable Care Act, commonly referred to as “Obamacare.”

Indiana had applied for a waiver for a component of the law that requires 80 to 85 percent of health insurance premiums be spent on reimbursement for clinical services and for activities that improve health care quality for enrollees.

Under the law, small group health insurance markets will be required to spend 80 percent and large group markets will be required to spend 85 percent.

If insurance companies do not comply to the new requirement, they have to reimburse those who are enrolled in their health insurance plans, the law states.

Indiana applied for a waiver on May 13 that would slowly increase Indiana’s
requirement throughout several years, starting at 65 percent this year and
gradually increasing the requirement to 80 percent by 2015.

The state also asked that large group providers and small group providers be considered the same in Indiana.

The act allows for states to be granted a temporary waiver for implementing the 80 percent requirement if applying it “may destabilize the individual (health insurance) market in such state” and if there is a “reasonable likelihood” of destabilization.

The Department of Health and Human Services denied Indiana’s application for a waiver based on its finding that the state did not meet any of the six criteria required to be granted a waiver.

The Department found that most of Indiana’s health insurance companies already meet the requirements or are profitable enough to be able to meet them. The department also found that those who do not meet the requirements, are reevaluating their business model to accommodate them.

In a statement Monday, Gov. Mitch Daniels condemned the decision to deny Indiana the waiver.

“Once again, the Obama administration took a position in favor of higher health care costs and against personal freedom,” Daniels said. “Today’s letter is further proof that the PPACA is a catastrophe for America and must be repealed.”

— Zach Ammerman