Wednesday, June 22, 2011

Oops! Flaw in Obama health care means millions of middle-class people get nearly free insurance intended for the poor - 21st June 2011

President Barack Obama's health care law would let several million middle-class people get nearly free insurance meant for the poor, a twist government number crunchers say they discovered only after the complex bill was signed.

The change would affect early retirees and would allow a married couple could have an annual income of about $64,000 to still get Medicaid, said officials who make long-range cost estimates for the Health and Human Services department.

Up to three million people could qualify for Medicaid in 2014 as a result of the anomaly.

That's because, in a major change from today, most of their Social Security benefits would no longer be counted as income for determining eligibility.

Medicare chief actuary Richard Foster says the situation keeps him up at night.

‘I don't generally comment on the pros or cons of policy, but that just doesn't make sense,’ Foster said during a question-and-answer session at a recent professional society meeting.

It's almost like allowing middle-class people to qualify for food stamps, he suggested.

‘This is a situation that got no attention at all,’ added Foster. ‘And even now, as I raise the issue with various policymakers, people areLink not rushing to say ... we need to do something about this.’

Indeed, administration officials and senior Democratic lawmakers say it's not a loophole but the result of a well-meaning effort to simplify rules for deciding who will get help with insurance costs under the new health care law. Read More