Obama Health Care Law: States Suing To Overturn Law Collect Federal Funding

WASHINGTON — Federal officials announced Tuesday they are awarding more money to help states carry out President Barack Obama's health care overhaul. So what's the surprise?

Seven states that are suing to overturn the landmark law are also on the list for funding.

Health and Human Services Secretary Kathleen Sebelius said 13 states will split grants totaling nearly $220 million to help set up health insurance exchanges. Millions of uninsured Americans will be able to buy private coverage through these online supermarkets starting in 2014, with taxpayer-provided assistance to cover the cost of premiums.

"States are moving at their own pace to get their exchanges up and running," said Sebelius. "This is a natural result of a process that gives states maximum flexibility."

The exchanges represent half of Obama's strategy for expanding coverage to more than 30 million uninsured people. While the middle-class uninsured will pick a plan through their state exchange, low-income people will be covered through an expanded Medicaid program.

Although opponents challenge the constitutionality of "Obamacare," some states led by conservatives are hedging their bets.

The seven that are suing and also getting money are: Alabama, Arizona, Idaho, Iowa, Maine, Michigan and Nebraska. Three other plaintiff states – Indiana, Mississippi and Nevada – previously got funding.

Accepting the money does not commit a state to follow through and actually establish a health insurance exchange.

But it is a sign that federal officials recognize a state is making significant progress. The money can be used for a variety of purposes, including tackling such challenges as the kind of technology a state will use to sign up its citizens.

Under the law, if a state fails to set up an exchange, the federal government will step in and do it for them.

"We continue to encourage all states to establish their own exchanges," said Chiquita Brooks-LaSure, HHS director of coverage policy. "We think states are in the position of understanding best what they need for their own residents."

States are all over the place in their preparations for the health overhaul.

Some are on the sidelines, waiting for the Supreme Court to rule. Others, like California, are forging ahead to set up their exchanges. Vermont even wants to run a statewide single-payer system loosely modeled on Canada's. Many have made varying degrees of progress. In most states, pivotal health care decisions will be made in next year's legislative sessions.

Also receiving grants Tuesday were Delaware, Hawaii, New Mexico, Rhode Island, Tennessee and Vermont.

Rhode Island earned the distinction of becoming the first "Level Two" grant recipient, meaning the state has made a formal commitment to set up an exchange and is receiving multi-year funding.

Counting those that previously got funding, a total of 29 states have now received advanced planning grants.

Also Tuesday, federal officials released guidance for the states on technical issues involving coordination between different levels of government in running the exchanges.

___

Online:

HHS guidance to states - http://tinyurl.com/cvpn3ms

Comments

[bdunlap52]

07:13 PM on 11/30/2011

I guess I don't see the point of this article. Of course these states are going to get the money back, just in case the Supreme Court does not rule the correct way and these states are forced to set up these exchanges before the federal government steps in and does it for them. It's the best bet for protecting their citizens.

[treehugger5]

10:56 AM on 11/30/2011

I cannot wait to check out at the online healthcare coverage supermarkets! I'm so glad that States are getting the opportunity to work out their own insurance exchanges.

[joethecaregiver]

05:41 AM on 11/30/2011

our country will give billions of dollars to other countries to help the people there, when that money could be used to help AMERICANS.I can not understand why we remain so silent it about that but we will debate topics that really have no true meaning[to many to type down]

[WondererofAges]

10:18 PM on 11/29/2011

Another interesting fact: If you go to a hospital recognized or noted for performing specific operations or specializing in treating certain illnesses or injuries or conditions, Medicare is very likely to approve what your doctor wants to do to treat you - even, in some cases, things considered "experimental." But if you are hospitalized in some kind of non-distinct hospital, especially if it has a poor reputation for outcomes, Medicare/Medicaid is now more likely to ask questions or outright deny a procedure; you and your doctor can always appeal, however. So, if possible, try to go to hospitals well-known for dealing your specific ailment or injury if you are on Medicare/Medicaid.

[WondererofAges]

10:08 PM on 11/29/2011

I have close relative working at major cancer hospital. We talked about how badly medical care system is broken at Thanksgiving. Medicare and Medicaid are keeping doors open of hospitals all across country. Because they pay promptly; Medicare usually pays in about 3 weeks. On the other hand, relative working in cancer hospital said private insurance companies engage in "dodge, delay and deny" constantly. Aetna was the slowest payer and worst to deal with where she works. Even if you are fortunate enough to have a medical insurance policy, either thru your employer or as a individual, you will be billed and expected to pay for your care within 30 days, regardless of whether your insurance carrier is stalling as much as they can. The medical insurance companies keep your premiums in the bank as long as possible so they can get the interest on all that money. They are in the business of making a PROFIT; covering their clients medical expenses is very secondary. It is IMMORAL to put profits before people's lives!

[jamaicagirl]

09:55 PM on 11/29/2011

I still do not understand why persons are against an insurance exchange (pool insurance or group insurance).

We have a group health insurance system at my office and for the first 12 years, I paid into this system and I hardly used it and even thought of giving it up, because I did not get sick. Now I am on medication that I need every month and I am so glad I have insurance. Medication to save your life is not cheap.

We can never think of the now moment alone, we also have to think of the future and ask "What if?".

[blitznstitch]

09:46 PM on 11/29/2011

Single Payer!

[bdunlap52]

07:14 PM on 11/30/2011

Long lines for service! Oh, not the cheer we're having?

[ngannon]

12:10 PM on 12/01/2011

Don't believe the hype. Truth is people in single payer systems wait much less time than we do- have you gone to an ER lately? Hours and hours.

[amicusceo]

09:44 PM on 11/29/2011

New health program out, free to all, just walk in, no insurance, no problem, not required. As members of the American society, all medication and health services are donated to government run hospitals. So the federal government must set up a medical facility anywhere the population is 10,000 or more. The size of the facility will be based on the size of the population. This will create hundreds of thousands of jobs all across the nation.

[lookiehere]

09:37 PM on 11/29/2011

Obama Health Care is going down big time when the Supreme Court issues it's thumb's down ruling coming soon!

[liberalbug]

10:05 PM on 11/29/2011

So how do you feel about Romney Care?

[bdunlap52]

07:16 PM on 11/30/2011

Romney care was a state program, which is Constitutional. I didn't agree with it, but it wasn't my state. The federal program mandating what the states have to do is not Constitutional.

[DeeFromTheD]

10:10 PM on 11/29/2011

It would be something for the rabid right to try to defend taking away all those children with pre-existing conditions, young adults under 26 able to stay on their parents insurance, seniors savings with the closure of the donut hole, and giving the banks back fees from the government to get education loans. You're h8 and the rabid right h8 are dangerous to this country.

[bdunlap52]

07:16 PM on 11/30/2011

Why does someone who is 26 need to be on their parents insurance? I've been on my own plan since I was 18.

[amicusceo]

09:27 PM on 11/29/2011

"While the middle-class uninsured will pick a plan through their state exchange, low-income people will be covered through an expanded Medicaid program."

I've been saying all along that this Affordable Healthcare Act was not needed, all they had to do was expand medicaid and now we see that by expanding medicaid those 30 million will be covered. The 300 million others are going to get screwed.

[retie133]

09:27 PM on 11/29/2011

These republican governors and legislators have no plan of their own to help cut the cost of healthcare or to help the people they represent get coverage or they would set up their own state exchange and not take money from the government.They will be happy to let people be uninsured and allow insurance companies make more money through emergency room visits costing taxpayers even more money.

[petergard]

09:11 PM on 11/29/2011

A true single payer system remains the only choice for the long-term solvency of health care. However, the AHC is still an important first step that when fully implemented will at least start to reign in costs. In short, we need to work to improve and strengthen this initiative, not destroy it.

[MIKEBC]

09:10 PM on 11/29/2011

For profit healthcare and health insurance, things we can thank the republicans for, is bankrupting this country, it's a major reason for a jobs shortage.

[zcapitalism]

09:13 PM on 11/29/2011

so you actually think that republicans invented for profit healthcare insurance?You have to be the stupidestsonofabiatch on earth.

[Rick4646]

09:25 PM on 11/29/2011

it's not that they think the GOP invented for-profit health care. it's that the health insurers abuse it's power and deny coverage for no reason, gouge Americans, and is the cause of the leading form of bankruptcy....and the GOP supports this abuse. I think you know this but you just wanted to give your obligatory name-calling, I'm better than you attitude.

[BarrySernto]

09:05 PM on 11/29/2011

Why can I not find an article about Obama sitting down with the two European leaders about their crisis? His will to sit down with the Europeans but not with are own Congress to deal with our debt mess? Will there be a backroom deal for the Fed to buy up all of these bonds to save Europe? This man wants so bad for Europe to like him why doesnt he just move there because he hasnt done us any favors! Maybe its time for Europe to do away with the king and queens they spend million to support but do nothing their just figure heads. Now we have countries to big to fail and we will put another band-aid on the problem because all of the socialist programs cant be paid for.

[kauthon]

08:56 PM on 11/29/2011

Health care exchanges will illuminate the ugly world of health care insurance.