State applies for health care dollars under federal law it fights in court
by dermotcole
 Dermot Cole
Sep 01, 2010 | 1850 views | 9 9 comments | 8 8 recommendations | email to a friend | print | permalink

While the state of Alaska has joined a lawsuit against the new health care law, it is also seeking funds under the law to help pay for insurance for retirees and dependents.

The federal Department of Health and Human Services says that the state of Alaska "retirement and benefits plans" have applied for and been approved for funding under a provision of the law designed to help governments, unions and companies pay for health insurance for retirees age 55 and older who are not yet eligible for Medicare.

The federal agency said the Municipality of Anchorage, the Alaska Teamster-Employer Welfare Trust and the Alaska Electrical Health and Welfare Fund have also been approved.

The  Alaska groups are among more than 2,000 entities in every state approved for money in the first round of the program.

Alaska is one of several states seeking the money and suing to overturn the law. I have asked the Parnell administration for details on how much money is expected under the program.

The federal agency said that businesses, governments and other employers accepted into the program will be reimbursed for medical claims for early retirees, spouses and dependents.

"Savings can be used to reduce employer health care costs, provide premium relief to workers and families, or both," HHS said on the website www.HealthCare.gov.

"Applicants who are approved into the program receive reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000.) The programs ends on Jan. 1, 2014 when state health insurance exchanges are up and running," HHS said.

The Washington Post said that the large number of applications has created  fears that the $5 billion program will run out before 2014.

In announcing that he was joining the lawsuit, Gov. Sean Parnell said in April that the "federal government has reached well beyond the score of its authority— into the lives and freedom of Alaskans."

The requirement that people get health insurance was the worst part of the law, he said.

“This case is ultimately about the extent to which the federal government can exert power over the states. It has critical implications for the liberty interests of all American citizens. Alaska must join this important litigation," Parnell said.

 

 

 

 

Comments
(9)
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northpolesanta
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September 02, 2010
****While the state of Alaska has joined a lawsuit against the new health care law, it is also seeking funds under the law to help pay for insurance for retirees and dependents.***

dang SOCIALIST/NAZI/COMMIE/FASCIST public-CAN state government! how can this be?!?

someone call joe miller, he has "a plan"....
Buick-Mackane
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September 02, 2010
Ratahanman , wow, Miller is responsible for this already ! Man, he's fast !
Shokd
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September 02, 2010
We just detest welfare!

Now, where's our welfare!

Alaska "conservative" ideals in action.
twain
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September 02, 2010
Lets quit all this under the table funding. Single payer NOW !!
ratahanman
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September 02, 2010
tis the Alaska way. complain about the gov but take their money and ask for more. go miller!
realism101
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September 02, 2010
Yes, so the state applies for and accepts the Federal funding for healthcare but still sues them. I for one as a constituant of this state feels that it should have been put to a vote on whether to sue the Federal gov't. Parnell only speaks for the big business. He doesn't speak for the people who need the help.

If people would actually read the healthcare legislation they would understand how much the gov't will save in the end. Insurance companies bet on you dying before they pay out anything. Your ignorant if you thing otherwise.
88888
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September 01, 2010
I thought the idea of the health care package was to provide medical care for those in need. Not to reimburse unions and private businesses for insurance claims for employed people who are already paying premiums for the "insurance."

Medicaid and Medicare are billed first, and then private insurance. If there is no Medicaid or Medicare, then the government bails out the insurance companies. The end result is employees are paying premiums, and getting nothing from the insurance companies, because the government is footing the bill for all of the expenses.

What a ripoff for the insurance companies and self-insured employers/unions!
carstars
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September 01, 2010
Disagree if you want, litigate if you must, but to apply for the benefits under the law is the work of the State of Alaska as it should. Health care is one of the stars of the economy.
bumpo
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September 01, 2010
I'm trying to figure out why the federal taxpayer should be on the hook for private and municipal retirement programs. It would be nice if everything was free and all, but this is just taking the cost from one group, i.e. the taxpayer and giving it to another, i.e. private and municipal pensions.

This could get real expensive real fast.
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