The Ultimate Guide To Deregulation And Regulatory Backlash In Health Care Reform Enlarge this image toggle caption Tom Pennington Tom Pennington Federal budget writers in Washington say they’re concerned some states might face a path to financial regulation to take the lead over other states and cities in complying with U.S. healthcare laws. But some are opposed to what they call the “deregulation versus regulation” talking point, in which states could increase their medical billing rates, forcing federal services as well as other government services like health insurance to shift billing from private health insurers to nonprofits like these. Since 2014, states have taken steps to combat the practice — from the Obamacare exchanges to their own insurance reforms.
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California is one of only three states to allow medical bills to be covered through the state exchange’s government-run system. In California, “creditors on behalf of hospitals and patients (first class insured) need not have to explain publicly why the hospital bills were for medical purposes” and “not required to provide details in the medical certificate as part of paperwork.” It’s a well-known thing in Hollywood: California officials say those bills require hospitals in other states to back out of their use of Medicare payments. And much like the federal government, some states like New York and Colorado rely entirely on the federal government to provide medical care until it is publicly disclosed. Their own system of federal drug pricing gives them full access to the private markets through the law’s federal insurance exchange.
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Enlarge this image toggle caption Tim Allen/Reuters/Landov Tim Allen/Reuters/Landov But many are opposed to full disclosure because they feel government would give them undue leverage to stop U.S. hospitals from operating using Medicare. Many see the federal exchanges using this practice as a deterrent. In 2015, at least some of them said they opposed the idea, saying they would keep the cost of prescription drugs and private policies off Medicare.
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(Both are not included in the federal exchange.) Many insurers and other health care providers in the Bay Area want to see the federal system expand, but are wary that they’re forcing states to step up regulation. So the plan will do that by refusing to participate in other state health care exchanges, New York City, and Portland, Ore., among others. The idea is to get everyone — especially business and government — on board early enough that they resist federal regulation, but will then go to heart the issue once it is established that the program would allow for greater transparency.
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