Obamacare to Rely on Honor System; Room for Cheating? | Wall St. Cheat Sheet
By Meghan Foley
A new delay announced by the Obama administration has ignited another round of fears that the health reform legislation championed by President Barack Obama will not work as he had promised before its passage. Following so closely behind the government’s decision last Tuesday to postpone the Affordable Care Act’s employer mandate by one year, further evidence of implementation difficulties only gave the bill’s opponents more reason to suspect the reform would be unsuccessful.
On Friday, the administration buried a ruling in the Federal Register that delayed the Affordable Care Act’s requirement that the new insurance marketplaces verify consumers’ health insurance status and their incomes, two pieces essential for the function of the exchange system. Rather, the federal government will rely more heavily on consumers’ self-reported information until 2015 — one full year after the individual insurance mandate goes into effect. At that time, the government plans to have a stronger verification system in place.