Many if not most of Obamacare insurance exchanges will have to be set up and run by the Obama administration at the federal level. States are not required to set up exchanges. Politico reports that with only 17 states so far having said they will set up the exchanges. HHS role in bringing the law to life is going to be a lot bigger than originally thought. “More that a third of all state have already said they won’t set up the Obamacare exchanges.
In Missouri approving a ballot measure to vest authority over the decision in the Republican led state legislature, rather than leaving it up to the Demo governor. Missouri will not be establishing an exchange. Utah will continue to pursue our version of an exchange based on defined contributions, consumer choice and free markets.
The plain language of Obamacare doesn’t empower federal exchanges to distribute taxpayer-funded subsides to individuals; it empowers only stated based exchanges to distribute the subsidies.
HHS is lagging behind in developing the federal exchanges. HHS has contracted with a subsidiary of a private health care company to help build and police the very exchanges in which that company will be competing for business. The person who ran the government entity that awarded that contract has since accepted a position with a different subsidiary of that same company. HHS says in an attempt to hide this unseemly contract form public view until after the election, to hide the transaction form the SEC.
In January, HHS awarded Quality Software Services Inc, (QSSI) what the hill describes as a large cont5ract to build a federal data service hub to help run the complex federal health insurance exchange. The director of Obamacare’s center for consumer information and insurance oversight which the hill describes as the office tasked with crafting rules for the national exchange—was Steve Larsen. Larsen had been the insurance commissioner for Maryland when Obama’s HHS sect. Sebelius was the insurance commissioner for Kansas and the two are reportedly close.
The exchanges contracts to QSSI while Larsen was the CCIIO director and he played a central role in planning the construction of the exchanges, not known whether he made the decision to award the contract to QSSI or not. QSSI would shape, run and affect companies ability to compete to sell insurance through Obamacare federal exchanges. The contractor should provide services necessary to acquire, certify and decertify health plans offered on a federal exchange.
The contractor should monitor agreements with health plans, ensure compliance with federal standards and take corrective action when necessary. QSSI realizing what a valuable asset it had in the contract started shopping itself around. Larsen highly paid position with Optum,a subsidiary of United Health group, in June, United bought QSSI.
The quiet nature of the transaction which was not disclosed to the SEC, has fueled suspicion among industry insiders that United H may be gaining an advantage for its subsidiary. One critic familiar with the business rivalries of the insurance industry compared United purchase of QSSI to the NY Yankees hiring the American league umpires.
United group QSSI would be able to police the same field in which it would be a competitor. QSSI would have access to valuable data. Obamacare’s federal exchanges will be an extremely complicated technical endeavor to set up and run, as they would involve compiling massive amounts of risk-selection data on individual Americans.
When HHS became aware of United purchase of QSSI it couldn’t realistically void the contract because the Obama administration was already too far behind in setting up the federal exchanges. (AND WE ARE TO BELIEVE THIS B.S.) To void the contract would mean delaying the exchanges implementation by months. Given how late the administration has been in issuing rules for the exchanges, it would be extremely difficult to void a key contract find another company to perform the work and still meet the 2014 deadline.
Unwilling to void the contract HHS instead went to work on setting up a firewall designed to block United form gaining access, gaining an unfair advantage. However Sebelius decided that if word got out about the firewall other might feel United still had a huge competitive advantage. Therefore JJS suspended work on the firewall and told United not to alert the SEC to the purchase, even though they were legally bound to do so within four days of the transaction—wait until after the election.
Sebelius has not complied with written request from Hatch for information on all of this.
But it’s more problematic to hire a subsidiary of one of those insurance companies as an architect and policeman of the exchanges through which the Obama administration intends to have this abundant taxpayer money flow. HHS may have told a private company to violate federal securities laws in order to aid Obama reelection prospects.

Source weekly standard, Jeffrey anderson


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