Major ‘Glitch’ in Obamacare Could Affect 500,000 Kids in a Big Way

Eddie Muhammad peddles newspapers featuring a photo of President Barack Obama on the cover, to motorists stopped at a traffic light during a warm and windy winter day in Buffalo, N.Y., Wednesday, Jan. 30, 2013. Credit: AP
WASHINGTON (AP) — Some families could get priced out of health insurance due to what’s being called a glitch in President Barack Obama’s overhaul law. IRS regulations issued Wednesday failed to fix the problem as liberal backers of the president’s plan had hoped.
As a result, some families that can’t afford the employer coverage that they are offered on the job will not be able to get financial assistance from the government to buy private health insurance on their own. How many people will be affected is unclear.
The Obama administration says its hands were tied by the way Congress wrote the law. Officials said the administration tried to mitigate the impact. Families that can’t get coverage because of the glitch will not face a tax penalty for remaining uninsured, the IRS rules said.
“This is a very significant problem, and we have urged that it be fixed,” said Ron Pollack, executive director of Families USA, an advocacy group that supported the overhaul from its early days. “It is clear that the only way this can be fixed is through legislation and not the regulatory process.”
But there’s not much hope for an immediate fix from Congress, since the House is controlled by Republicans who would still like to see the whole law repealed.
The affordability glitch is one of a series of problems coming into sharper focus as the law moves to full implementation.
Starting Oct. 1, many middle-class uninsured will be able to sign up for government-subsidized private coverage through new health care marketplaces known as exchanges. Coverage will be effective Jan. 1. Low-income people will be steered to expanded safety-net programs. At the same time, virtually all Americans will be required to carry health insurance, either through an employer, a government program, or by buying their own plan.
Bruce Lesley, president of First Focus, an advocacy group for children, cited estimates that close to 500,000 children could remain uninsured because of the glitch. “The children’s community is disappointed by the administration’s decision to deny access to coverage for children based on a bogus definition of affordability,” Lesley said in a statement.
The problem seems to be the way the law defined affordable.
Congress said affordable coverage can’t cost more than 9.5 percent of family income. People with coverage the law considers affordable cannot get subsidies to go into the new insurance markets. The purpose of that restriction was to prevent a stampede away from employer coverage.
Congress went on to say that what counts as affordable is keyed to the cost of self-only coverage offered to an individual worker, not his or her family. A typical workplace plan costs about $5,600 for an individual worker. But the cost of family coverage is nearly three times higher, about $15,700, according to the Kaiser Family Foundation.
So if the employer isn’t willing to chip in for family premiums – as most big companies already do – some families will be out of luck. They may not be able to afford the full premium on their own, and they’d be locked out of the subsidies in the health care overhaul law.
Employers are relieved that the Obama administration didn’t try to put the cost of providing family coverage on them.
“They are bound by the law and cannot extend further than what the law provides,” said Neil Trautwein, a vice president of the National Retail Federation.
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Comments (82)
republic2011
Posted on January 31, 2013 at 10:03amAll they did was make things worse. Big surprise! Government doesn’t fix anything and they can’t manage anything within budget. We needed reform, not more government control. This all could have been addressed by allowing purchases of insurance across State lines, reforming the pricing afforded to insurance companies vs. private citizens (insurance companies had built a monopoly – they got preferred pricing, while the rest of us paid through the nose), designating common insurance plans for only the really bad stuff (why do you need insurance to get treated for the common cold? – that should be out of pocket), cleaning up the medicare/medicaid fraud, tort reform, and a slew of other ideas that if implemented piecemeal, we could have tracked the results and not screwed this all up for everyone. Repeal that 2000+ page law and let’s look at how to really reform healthcare.
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desertspeaks
Posted on January 31, 2013 at 2:44pmour government is a clusterf*** there is NOTHING that they do well other than spend other peoples money in the most useless and wasteful ways!
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pavepaws
Posted on January 31, 2013 at 4:35pmOoops.
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txswalker
Posted on January 31, 2013 at 9:58amWait family coverage costs 1308 dollars a month? I got my own BCBS family policy which is better than what the employer gives us and its $425 a month…is it more expensive outside Texas?
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bccrane
Posted on January 31, 2013 at 4:59pmBack in 2008 our BCBS the lowest possible coverage was $625.00 per month for a family and this is because Mich. is heavy union and BCBS treated everyone the same. When Obama ran in 2008 and outlayed his solution that is when I started looking at how much we were paying and how much we were actually using and came to the realization that the savings of dropping the health insurance I could also pay for what I didn’t have coverage for dental and optical out of pocket at a huge savings. So I have been paying out of pocket ever since, now I can no longer do this without breaking the law.
Obama care has nothing to do with healthcare but with control, you control people’s healthcare you control the people. Note how his “common sense” EO’s for curbing gun violence uses Obamacare and now we have two gun control czars in the healthcare system to determine how to use Obamacare to limit gun rights. He has effectively turned the doctors into the brownshirts by destroying the doctor patient relationship. Notice how the liberals are now trying to shame gun owners into giving in on the 2nd amendment just like Holder said it should be done.
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repup
Posted on January 31, 2013 at 9:46amThis bill was not intended to fix health care affordability, the conquences have already spoken to that. Ocare was written as a way to strip away rights so that the government could grant them back as privilege, much like driving. It’s much easier to require licensing when the govenment grants privilege as opposed to God granted rights.
Some people are more equal than others.
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The_Jerk
Posted on January 31, 2013 at 10:32amExaxctly. That’s what Medicaid and Medicare was all about too. That’s when it all started in mass.
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love the kids
Posted on January 31, 2013 at 9:16amTo bad we had to pass it to find out what was in it. Thanks Dems.
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MAJORMINOR
Posted on January 31, 2013 at 11:20amThe best way to fix it is to have all members of congress fall under its rules and regulations instead of having their own special Cadillac plan for themselves and exempting themselves from OCare.
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Small World
Posted on January 31, 2013 at 5:43pmYep! The fog is clearing !
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Wyerd_001
Posted on January 31, 2013 at 9:13amRepublicans did not write the “law”, they opposed it for this very reason, and the “law” was pushed with a super majority in the house and senate….now they want to blame the Republicans for not fixing the democrat’s fraudulent work?
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MuddyWaters
Posted on January 31, 2013 at 12:21pmand what’s more irritating, it’s appropiately named “obamacare”, not republicancare. Ceasar attatched his name to it. ringing endorsment.
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Disgusted_in_CT
Posted on January 31, 2013 at 9:11amAt the same time, virtually all Americans will be required to carry health insurance, either through an employer, a government program, or by buying their own plan.
I WILL NOT COMPLY.
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13th Imam
Posted on January 31, 2013 at 9:15amSo you are the other conservative in The State of Blumenthal. I knew there was one.
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13th Imam
Posted on January 31, 2013 at 8:54amThe statement that “They won’t be able to get assistance from the government” is BULLCRAP. The only money they could get is from other ACTUAL TAXPAYERS. The DEMOCRATS always try to take credit for paying Takers bills, but everyone knows the gov doesn’t add anything to the income stream, except falsely printed money.
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Fubared
Posted on January 31, 2013 at 3:35pmWhat a sick pos. Where are there Jews in the sordid healthcare story Jihad Jerk? You have to advance the reich at all turns. They are individuals not acting for the Jewish people; you give all aspiring nazis a bad name with your feeble attempts. Nazi. lalalalalalalala you pos.
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loveoursoldiers
Posted on January 31, 2013 at 8:48amWhen the “law” was passed it was I recall l dem congress.. I recall Nancy Legosi walking arm in arm up to the capitol with civil rights leaders and gavel in hand
BLAME NANCY and HARRY.. and BARRY
He who takes he credit also takes the blame
I
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poorrichard09
Posted on January 31, 2013 at 9:13am@loveoursoldiers: yes, why oh why do they hate “the children?”
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DZ-015
Posted on January 31, 2013 at 8:37amIRS regulations could not have legally fixed this “oversight.” Such regulations are only appropriate where the tax law allows for interpretation, not when there is no law in place to cover the situation. Considering the length of the Obamacare law and the haste with which it was passed, this situation hardly comes as a surprise. Time to read it beforehand and proper debate might have uncovered such flaws. Of course, one could take the cynical view that this and other omissions may be more than just mistakes, but rather deliberate pitfalls designed to provoke more legislation, including tax increases. I can see it now as the Democrats propose more “revenue generation” to fix the oversight “for the children.” Anyone opposed to fixing the problem they created will then be labelled heartless and cruel.
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wrazzlin1
Posted on January 31, 2013 at 8:24am“The Obama administration says its hands were tied by the way Congress wrote the law.” Uhhhhh it wasn’t law until Obama SIGNED it. They didn’t read it just like Congress didn’t read it. It just seemed like the right thing to do at the time. We are doomed!
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mikelivi
Posted on January 31, 2013 at 8:53amEvery screw up by this awful president he blames on congress. I cannot believe he was reelected! My God we ARE doomed wrazzlin1.
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G-WHIZ
Posted on January 31, 2013 at 11:16amthe law was written by the TIDES FOUNDATION !! All laws are supposto start in the HOUSE-O-REPS!! No one in congress ever “wrote” this law!! Every part of this law IS NOT A MISTAKE!!
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SocialistSlayer
Posted on January 31, 2013 at 8:21amBOO HOO ! The Cost of Health Care will double this year and less people will be covered – way to go all you Communist obama Morons !
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Keatonc33
Posted on January 31, 2013 at 8:41amWow.. Thats not true at all
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13th Imam
Posted on January 31, 2013 at 9:07amOK It will triple. Thanks for the correction Kettty Baby.
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Fubared
Posted on January 31, 2013 at 3:39pmIt is called math Lil Keatie. Again, sue the crap out of those community “college” professors. Nothing adds up, unless you were super special and got your waiver. Why a waiver if 13000.00 pages are perfect? And you get to pay for illegals too-
http://dailycaller.com/2013/01/31/dhs-giving-new-immigrant-welcome-materials-a-makeover/
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666Sucks
Posted on January 31, 2013 at 8:20amI keep hearing people call these democrats dimwits. Stop being a dimwit! 1st, they are not Democrats, Kennedy was the last Democrat. These are Communists, Marxist Communists AKA Socialists AKA Progressives! 2nd, this is all by design, it is the communist overthrow of America! And they beat our asses! Obama will go down in history as the man who single handedly, regardless of the UN, George Soros, Soviet and Chinese master minds behind him, singe handedly defeated America! The only “dimwits” are the people in Congress on the right who failed to recognize what is happening and have him arrested for fraud, forgery, and murder!
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The_Jerk
Posted on January 31, 2013 at 8:36amAbout time people begin to realize that truth. Here’s one more driving for for communism. They’re so abundant that I could write for days, and have, about who the culprits really are. Ron Pollack, like Don Berwick, is a cultural changing, I want to rule your life, Jewish progressive. Here are some more progressive movers and shakers. You had better wake up.
http://www.sourcewatch.org/index.php?title=Jewish_Fund_for_Justice#Advisory_Committee_.5B3.5D
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13th Imam
Posted on January 31, 2013 at 9:09amThose Wascally Hebrews Again?
Whoda Thunk?
Some Jew park in your private parking space again?
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The_Jerk
Posted on January 31, 2013 at 9:16amWhen the facts are the facts, I guess that you really have no other sane response. Saul Alinsky comes to mind… yet another cultural changing, Jewish progressive.
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obamasacommie
Posted on January 31, 2013 at 3:07pmI agree with you except that old drunk woman killer Teddy boy was the last democrat. You are confused he was one of the biggest Commies in the bunch. And the house republicans for the most part are just as guilty, most of them are either a part of it or they are on the take and could care less about what’s going on around them as long as they get theirs. We are definatly screwed as most of the American people dont seem to care as long as they get theirs as well.
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SpankDaMonkey
Posted on January 31, 2013 at 8:07am.
It should be called Obamadontcare…….
I wish the Doctors would go on STRIKE and put and end to this Crap once and for all……..
Or just cut off the Free Lunch Slaves………
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Sharon Rose
Posted on January 31, 2013 at 8:54amIf I recall, the Dems controlled the Congress when this wrongful bill was passed, too bad they didn’t read it.
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slr4528
Posted on January 31, 2013 at 11:56amYou know what…that actually might be what it takes to draw attention to this travesty. All doctors should organize a sickout. Let the nursing unions take over the hospitals.
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biohazard23
Posted on January 31, 2013 at 8:07am“It’s Bush’s fault!” ~ dear leader
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SamIamTwo
Posted on January 31, 2013 at 8:06amDon’t fund the bloody thang…defund it.
Get in touch with your representatives.
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toiletclogga
Posted on January 31, 2013 at 8:25amIt’s a tax! It can be repealed, and defunded!
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BROBB549
Posted on January 31, 2013 at 8:02amDoes this person, who calls himself our President, ever take responsibility for anything that doesn’t go perfectly well? Anything that has gone wrong is someone else’s fault but he is more that ready to accept praise when anything goes right. That is what we look forward to in Chicago politics.
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ArmedAndReallyPissed
Posted on January 31, 2013 at 8:02amIRS regulations issued Wednesday failed to fix the problem as liberal backers of the president’s plan had hoped…………………You back it, you suffer the consequences. How’s this “four more years” working out for you ?
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BODYBAG
Posted on January 31, 2013 at 8:14am“The Obama administration says its hands were tied by the way Congress wrote the law. ”
Congress didnt “write” the law. SEIU wrote the law.
And if you werent already aware that you were living in the land of ‘tards
Homeland Security has advice for confronting mass murders: SCISSORS
http://www.nypost.com/p/news/national/shear_bravery_beats_guns_feds_d9BanDpupuVezePd6trYoM
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LUCIDANDBLACK
Posted on January 31, 2013 at 7:58amAbsolutely no fixes, only removal; keep the pressure up.
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SolitudeBliss
Posted on January 31, 2013 at 7:51amI guess those families found out “What was in it” well after Obamacare was passed.
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dublinthewagons
Posted on January 31, 2013 at 7:48amGovernment is the problem.
A problem never solves a problem.
The second amendment is in good hands HUH
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walnutportconservative
Posted on January 31, 2013 at 7:55amAmen
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freenj
Posted on January 31, 2013 at 7:39amTo paraphrase Nancy Pelosi, as she smiles, we have to pass the bill, to see what’s in it! How’s that working for you now, Nancy?
The dimwit Democrats had to pass this bill in the dark of night, without a Republican vote and now they expect the Republicans to fix their errors, f them I say!
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willrhar
Posted on January 31, 2013 at 9:13amThey’re not looking for the Republicans to fix it, they’re trying to find a way to blame the Republicans for it.
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Yogibearwatcher
Posted on January 31, 2013 at 7:38amThis administration owns this, Congress has done nothing to this total wasteful bill. D.C. Is one huge “welfare” city from the president down!
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Gonzo
Posted on January 31, 2013 at 7:33am“The Obama administration says its hands were tied by the way Congress wrote the law.” I guess “the buck stops wherever I say it stops” is this administration’s motto.
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dublinthewagons
Posted on January 31, 2013 at 7:44amIt’s all somebody else’s fault. Says the man child white house.
As long as illegals are covered it doesn’t matter. Right? No
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ares338
Posted on January 31, 2013 at 7:30amThey should have read it so they could have seen what was in the bill. Nancy was right!
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toiletclogga
Posted on January 31, 2013 at 7:23amA very major glitch, or maybe not a glitch at all, has affected millions of Americans because of Obamacare!
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