Maine Granted Three-Year Waiver From Obamacare Premium Regulation
March 11, 2011 by Personal Liberty News Desk
Maine has become the first State to receive an exemption to a key provision of President Barack Obama's healthcare law.
According to media reports, the Federal government has granted the Pine Tree State a three-year waiver on the requirement that health insurers must spend at least 80 percent of premiums on patient care. Insurers in Maine will have to spend only 65 percent of premiums on patients, and the rest can go toward profits and administrative costs.
Steve Larsen, the deputy administrator of the Center for Consumer Information and Insurance Oversight, concluded that Obamacare's premium expenditure rule "has a reasonable likelihood of destabilizing the Maine individual health insurance market." The waiver will last through 2013.
Bloomberg reports that New Hampshire, Nevada and Kentucky have also applied for exemptions to the 80 percent rule. The government is still reviewing those requests.
On March 8, the Obama administration formally appealed a Federal judge's ruling in Florida that deemed the legislation unConstitutional. In January, District Judge Roger Vinson became the second justice to rule against the individual mandate that requires most Americans to purchase health insurance or face fines. However, Vinson was the first to invalidate the entire law.
The appeal will go to the Court of Appeals for the 11th Circuit in Atlanta, according to Reuters. The battle over Obamacare is expected to reach the Supreme Court.