Obamacare Requires Federally-backed Insurance to All State Citizens
San Francisco, CA -- (SBWIRE) -- 11/02/2012 -- The United States government is about to take on a new role as health care provider.
Provisions included in the controversial ‘Afford Care Act’, also known as ‘Obamacare’, passed in 2010 require that the national government set-up nationwide health insurance plans that can be offered to all U.S. citizens in every state.
The state-jumping plans were added to the act as a compromise to ensure national insurance coverage after a public option was effectively killed by Republican ire. Those in favor of the new national plans say that competition will be bolstered in states where one-or-two companies currently dominate the local insurance market.
The new plans will compete head-to-head with private insurance and the competition should drive prices lower as existing insurers fight to compete against the federally-operated plans, which may have considerable advantages in negotiating premiums and benefits - the new federal plans will be negotiated by the U.S. Office of Personnel Management, the agency that negotiates benefits for current federal employees.
No solid figures have emerged as to how many Americans will decide to sign up for the government-backed plans, but the Obama administration projected that each of the national plans would have 750,000 subscribers at the end of their first year on the market.
The Affordable Care Act requires that at least one of the national plans be offered by a non-profit and industry experts expect that the role will fall to the Government Employees Health Association. The nonprofit, founded in 1937 to help railway mail clerks, already covers more than 900,000 federal employees, dependents and retirees. It is currently the next-largest plan used by federal workers, next to Blue Cross and Blue Shield.
Rules for the new insurance plans are currently under review by the White house and Obama administration officials have said that they would be available to the public soon.
FloydCountyHealthDept-In.com (http://www.floydcountyhealthdept-in.com/) offers valuable information about health insurance, insurance providers and upcoming changes to healthcare laws. For more information, visit FloydCountyHealthDept-In.com.
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