IT official says HealthCare.gov needs payment feature

[B2G]

Um...what? Isn't this needed by Jan 1?


"We still need to build the payments system to make the payments [to insurance companies] in January," Chao said during testimony. That so-called financial management tool was originally supposed to be part of HealthCare.gov when it launched Oct. 1, but officials later suspended its launch as part of their effort to get the consumer interface part of the site ready.

Chao on Tuesday said other areas that need to be built include "the back-office systems, the accounting systems."

Overall, Chao said, about 30 percent to 40 percent of the federal Obamacare marketplace has yet to be developed."

http://www.cnbc.com/id/101211556

[Yo_Mama]

1. Yes, but that's why they are considering direct enrollment at the insurance companies

This feature has to be ready Jan 1st in order for the premium subsidy payments to be made to the insurance companies.

[B2G]

2. So how would that work?

How would directly enrolling with insurance companies solve the government issuing payments to them after enrollment?

Confused...

[Yo_Mama]

3. I think the idea is that the insurance company would take the exchange's determination

of the subsidy the person is entitled to, and then bill the government directly for the subsidy portion. The exchanges were supposed to have backend payment systems, but it is not ready.

Under the law the person who pays their share of the Jan 1st premium would only have coverage for the first 30 days after the government failed to pay, so this is a very significant problem.

The insurance companies are worried, because the premium subsidies are very large in many cases and under the law they have to pay claims for 30 days. So they might get a tenth of the premium and have to pay claims, and it would bust the whole line.

I think they may be backing away from the exchange plans until this is settled.