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Thursday, October 24, 2013

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(AP) The principal contractors responsible for the federal government's troubled health insurance website say the Obama administration shares responsibility for snags that have crippled the system.

Executives of CGI Federal, which built the federal HealthCare.gov website serving 36 states, and QSSI, which designed the part that verifies applicants' income and other personal details, were testifying Thursday before the House Energy and Commerce Committee.

As the hearing began, Republican committee members said the website problems are symptomatic of deeper flaws in the Affordable Care Act, and they accused administration officials of misleading Congress with repeated assurances that the rollout was on track.

"The American people deserve something that works, or start over," said Rep. Tim Murphy, R-Pa., adding that the administration should suspend the health law until problems are fixed.

Democrats acknowledged the website problems but defended the law, saying millions of uninsured Americans are counting on it to finally get coverage - and thousands are succeeding in signing up. They accused Republicans of trying to sabotage the law, not to fix it.

"Republicans don't have clean hands coming here," said Rep. Frank Pallone, D-N.J.

The hearing comes as President Barack Obama's allies are starting to fret about the political fallout. Democrats had hoped to run for re-election next year on the benefits of the health care law for millions of uninsured Americans. Instead, computer problems are keeping many consumers from signing up through new online markets.

One House Democrat says the president needs to "man up" and fire somebody, while others are calling for signup deadlines to be extended and a reconsideration of the penalties individuals will face next year if they remain uninsured.

The focus on the contractors is a first step for GOP investigators. After the failure of their drive to defund "Obamacare" by shutting down the government, they've been suddenly handed a new line of attack by the administration itself. Administration officials, including Health and Human Services Secretary Kathleen Sebelius, are to testify next week.

Cheryl Campbell, senior vice president of CGI, suggested in prepared testimony that Congress should look beyond the contractors. HHS "serves the important role of systems integrator or 'quarterback' on this project and is the ultimate responsible party for the end-to-end performance," she said.

Overwhelming interest from consumers triggered the website problems, she said. "No amount of testing within reasonable time limits can adequately replicate a live environment of this nature," she said.

Andy Slavitt, representing QSSI's parent company, said the operation's virtual back room, known as the federal data hub, is working well despite some bugs. But his company was also involved with another part of the system, a component for registering individual consumer accounts that became an online bottleneck.

Slavitt blamed the administration, saying that a late decision to require consumers to create accounts before they could browse health plans contributed to the overload. "This may have driven higher simultaneous usage of the registration system that wouldn't have occurred if consumers could window-shop anonymously," he said.

Rep. Joe Pitts, R-Pa., chairman of the panel's health subcommittee, said he wants to focus on the administration's decision not to allow browsing, or window-shopping. That's a standard feature of e-commerce sites, including Medicare.gov for seniors. Lack of a browsing capability forced all users to first go through the laborious process of creating accounts, overloading that part of the site.

"Who made that decision? When was it made? Why was it made?" Pitts asked.

Acknowledging what's been obvious to many outside experts, the administration said Wednesday that the system didn't get enough testing, especially at a high user volume, before going live. It blamed a compressed time frame for meeting the Oct. 1 deadline to open the insurance markets. Basic "alpha and user testing" are now completed, but that's supposed to happen before a launch, not after.

Health insurance cancellation notices soar above Obamacare enrollment rates

(Daily Caller) Hundreds of thousands of Americans who purchase their own health insurance have received cancellation notices since August because the plans do not meet Obamacare’s requirements.

The number of cancellation notices greatly exceed the number of Obamacare enrollees.

Insurance carrier Florida Blue sent out 300,000 cancellation notices, or 80 percent of the entire state’s individual coverage policies, Kaiser Health News reports. California’s Kaiser Permanente canceled 160,000 plans — half of its insurance plans in the state — while Blue Shield of California sent 119,000 notices in mid-September alone.

Two major insurance carriers in Pennsylvania, Insurance Highmark in Pittsburgh and Independence Blue Cross in Philadelphia plan to cancel 20 percent and 45 percent of their total plans, respectively.

Nearly 800,000 New Jersey residents’ health-care plans will not longer exist in 2014, forcing insurers to create new ones for individuals and small business owners that hew to the Obamacare’s new regulations, The New Jersey Star Ledger found in early October.

“I don’t feel like I need to change, but I have to,” Jeff Learned, a television editor in Los Angeles, told Kaiser Health News. Learned now needs to scramble to find a plan to coverage his teenage daughter, whose health problems have required several surgeries.

More Americans have lost their individual health coverage in Florida and California than have gotten past the login screen on HealthCare.gov, according to The Washington Post, which reports that 476,000 applications have “been started,” but not completed. HealthCare.gov’s dysfunctional website has helped enrollment grind to almost a complete halt. (RELATED: HealthCare.gov contractor: We had only two weeks to test site)

But it’s difficult to determine exactly how lopsided the rates of cancellations versus the rates of enrollment are — the Obama administration jealously guards the official enrollment numbers, refusing to release them to even the law’s loyal Democratic supporters.

“It’s screwed up,” New York Rep. Charlie Rangel said of the White House’s secretive maneuvers.

Several states have released Obamacare enrollment data, however, revealing extremely low rates. South Dakota reported that only 23 people enrolled in the exchanges, a mere 0.0000276 percent of that state’s population. North Dakota enrolled only 20 residents.

Alaska, meanwhile, comes in at seven total enrollees, or 0.000957 percent of Alaskans.

Sources inside the Department of Health and Human Services told The Daily Mail that only 6,200 Americans signed up for coverage the day HealthCare.gov launched, while only 51,000 applied in the first week. (RELATED: Obama administration will not release number of Obamacare enrollees on opening day)

During his campaign to pitch the law to voters back in 2009, President Barack Obama vowed that Obamacare would merely lower costs for Americans with health insurance while providing coverage to the uninsured.

“[N]o matter how we reform health care, we will keep this promise to the American people: If you like your doctor, you will be able to keep your doctor, period,” Obama said to an audience at the annual conference of the American Medical Association. “If you like your health care plan, you’ll be able to keep your health care plan, period. No one will take it away, no matter what.”

“Again, [the Affordable Care Act] is for people who aren’t happy with their current plan. If you like what you’re getting, keep it. Nobody is forcing you to shift,” he later added.

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