--By July of 2014, HHS along with the Treasury and Labor Departments will establish a ten-state demonstration project under which participating states will be allowed to apply similar awards for participation in health insurance wellness programs in the individual market. If the project is effective, more states will be allowed to participate.

--The state projects cannot result in decreased coverage for individuals and cannot increase the cost to the federal government. States must ensure that consumers are protected in health promotion programs in the individual market. The health insurers must verify that the health insurance programs: do not create undue burdens for individuals insured; do not lead to cost shifting; are not a subterfuge for discrimination; ensure that consumer data is protected in accordance with HIPAA laws; and the state must ensure that the discounts or other rewards provided under the project reflect the expected level of participation in the wellness program involved, and the anticipated effect the program will have on utilization or medical claim costs.


Tax Changes

--An annual, non-deductible fee will be imposed upon the health insurance sector, which will be allocated across the industry by market share. Companies whose net premiums are $25 million or less will be exempt.

In other health reform news, the states of Michigan and New York have established a high-risk pool program. In New York, the Department of Insurance has unveiled the NY Bridge Plan; the plan will be administered by Group Health Incorporated (GHI), an EmblemHealth company. For Michigan, Physicians Health Plan of Mid-Michigan (PHP) will administer the plan. Both state plans offer health insurance coverage to individuals with a pre-existing medical condition, have not had insurance for six months, and who are legal residents. The benefits include primary and specialty care, hospital care, and prescription drugs.

Finally, the Kaiser Family Foundation has reported that in its latest tracking poll on health care reform, public support for reform has dropped from around 50 percent favorable to 43 favorable and 45 percent unfavorable. About ten percent have no opinion and around three percent are in favor of repealing the health reform law. According to Kaiser, many of those polled who hold unfavorable views of health reform are less disturbed or angry about health reform in particular than about government issues in general. For the upcoming elections, stances on health care reform are less important to voters than the economy and jobs. The poll says that the continuing debates on health reform are seen more as political games than policy differences.

More on the KFF poll can be found here.

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