Republican leaders in the House and Senate are calling on Gov. Peter Shumlin to delay implementation of mandated insurance coverage for individuals and small businesses under the state’s health care exchange until Dec. 31, 2014.
In a letter to Shumlin, Rep. Don Turner, R-Milton and minority whip of the House, and Sen. Joe Benning, R-Caledonia, demanded that the governor grant Vermonters a one year reprieve from the legal mandate until the exchange system is “perfected.”
“It is obvious that the system now intended to connect Vermonters to their new health insurance is not fully operational,” Turner and Benning wrote. “None of us are sure of when it will be so. Too many Vermonters, now with insurance, are needlessly anxious about whether they will be able to retain any insurance at all while the system is fixed. The system should be fully operational before mandates are applied.”
Turner and Benning have introduced bills in the House and the Senate, respectively to delay implementation of the mandate until 2014.
They encouraged the governor, to institute a one-year delay “if it is within your power to grant this delay” without legislative approval.
In a statement issued to media outlets on Wednesday night, Turner and Benning said Vermonters should have access to current insurance plans while the state improves the Vermont Health Connect system.
“We strongly feel this is the only way to ensure that Vermonters will have access to quality health care services and affordable health insurance on Jan. 1, 2014, and beyond,” they wrote. “The well-being of Vermonters is still at risk. It’s our job to represent their interests as we promised. We will continue to do our jobs and today we take another step that will result in a positive outcome for Vermonters. Vermonters deserve it.”
Individuals who purchase insurance on their own and companies with 50 or fewer employees must buy medical coverage through the exchange by March 31. Companies have the option to buy exchange plans directly from the insurers.
The original deadline for signing up for the exchange was Dec. 31. Shumlin announced an extension of the deadline last week. Technical problems and delays plaguing the Web-based exchange forced the administration to offer new options.
Business owners must decide by Nov. 25 if they want to extend current benefits to employees through March 31.
Small businesses can buy exchange plans directly from one of the two insurers — Blue Cross Blue Shield of Vermont and MVP Health Care — or make no decision and allow the insurer to choose a plan that most closely resembles the business’ current one.
The administration is automatically extending state-subsidized Catamount and VHAP plans for low-income Vermonters who are already enrolled in the plans through March 31.
Last month Benning and Turner called on legislative leaders and the governor to use the safety provision in Act 171 to extend the deadline for mandatory coverage under the exchange if the system wasn’t operational by Dec. 1, 2013. Shortly afterward, House Speaker Shap Smith says he persuaded the Shumlin administration to announce their contingency plan.
Vermont is the only state in the nation that has made it mandatory for a segment of the population – 100,000 citizens – to enroll in the exchange program.
As of Wednesday, 3,401 Vermonters had chosen an exchange plan, according to Emily Yahr, the public information officer for Vermont Health Connect.
Turner said he tried to enroll his family on the exchange this week and the site wasn’t working. He had to fill out a paper form with a navigator instead.
“The governor’s actions puts us in limbo,” Turner said. “People don’t know what is going to happen after March. Since we already moved to March 31, we’re hoping he will move the deadline to the end of the year.”
Business owners are exasperated and too few Vermonters are signing up, Benning said, and “unless people flock to enroll with a system that’s operational we have a major problem.”
“The system is not ready for prime time,” Benning said in an interview. “Everyone agrees with that, it doesn’t matter what party label you carry.”
When asked whether he would consider a year delay for mandatory participation in the exchange, Rep. Mike Fisher, D-Lincoln, chair of the House Health Care Committee said there were good policy reasons for Act 171, and “opponents will use every opportunity to express their opposition.
“Despite significant issues we’re in the middle of, it’s my hope these are transitional problems and not structural problems,” Fisher said.
Fisher says if low enrollment continues to be a problem, “Everything is on the table.”
The New York Times reported Thursday that President Barack Obama was poised to announce an “administrative fix” to the Affordable Care Act that would allow insurers to extend non-qualifying health care coverage through next year.
