WellPoint, Inc. (WLP), UnitedHealth Group Inc. (UNH): Three Obamacare Stories You Missed This Week

Medicaid expansion stays complicated
The HHS released a document (link opens PDF) further clarifying the potential waivers, or premium assistance that states may receive for Medicaid expansion alternatives.Here’s the key bit:

HHS will consider approving a limited number of premium assistance demonstrations since their results would inform policy for the State Innovation Waivers that start in 2017. As with all such demonstrations, HHS will evaluate each proposal that is submitted and consider it on a case by case basis relative to this standard.

The HHS clarification might calm the frenzy states stirred when Arkansas received a waiver to allow federal money to purchase private insurance for the newly eligible. Tennessee recently found out the hard way that HHS will express caution in approving submitted plans.

Insurers avoid Obamacare requirements?
The Los Angeles Times reports that top insurers including WellPoint, Inc. (NYSE:WLP) and UnitedHealth Group Inc. (NYSE:UNH) may delay their full exposure to the stricter coverage requirements of Obamacare. A loophole allows the insurers to renew existing policies that expire before the end of 2013. Renewal would make the plans, which don’t meet Obamacare standards, stretch well into 2014.

WellPoint, Inc. (NYSE:WLP) told the paper that its renewal plans would vary by state. UnitedHealth Group Inc. (NYSE:UNH) admitted that some of its renewals would stretch until the end of March.

What’s the big deal about some insurance plans lasting a bit longer than anticipated? The health insurance exchanges depend on as many healthy people enrolling as possible. Presumably those who would want to renew before January are people in good health with lower premiums. That means the exchanges will carry more risk burden since insurers can no longer deny people with previously existing conditions.

Foolish final thoughts
Vermont’s rate plan earned notice for being the first, but proposed prices from states with inferior insurance laws will provide more insight. The Medicaid expansion debacle remains topsy-turvy, but several more states will undoubtedly attempt waiver applications. Stay tuned — some of Obamacare’s most important changes haven’t even started.

The article 3 Obamacare Stories You Missed This Week originally appeared on Fool.com.

Fool contributor Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group (NYSE:UNH) and WellPoint. The Motley Fool owns shares of WellPoint.

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