Health reform waivers granted in Pelosi's district upset conservatives

CBS

Updated at 4:35 p.m. ET

Right-wing pundits and politicians, including Sarah Palin, are charging that the latest round of health care reform waivers from the Health and Human Services Department (HHS) are"corrupt," since nearly one-fifth went to businesses in House Minority Leader Nancy Pelosi's San Francisco district.

The corruption claims, however, appear to be a stretch at best: More than 90 percent of all waiver requests have been approved by the HHS, and officials explain to Hotsheet that these particular businesses simply applied for a waiver.

Conservatives today have responded angrily to a report from the Daily Caller pointing out that of the 204 waivers the HHS granted in April, waiving certain companies from one specific part of the Affordable Care Act, 38 went to businesses in Pelosi's district -- nearly 20 percent of the total.

Palin told the Daily Caller that the waiver process was "corrupt," while Ed Morrissey at the conservative blog Hot Air called the waivers "political payoffs."

The National Review Online published a column criticizing the waiver program entitled, "Waivers as Weapons." Mona Charen wrote for the NRO that as laws like the Affordable Care Act grant more power to regulatory agencies like HHS, the chances for abuse of power grow.

The waivers granted to these San Francisco area companies, and several others, exempt them the annual coverage limits mandated by the health care reforms passed last year. The waivers typically go to restaurants and other companies that offer "limited-benefit" health plans.

Limited-benefit plans are often used to cover part-time and low-wage employees, and they typically have low premiums and high deductibles. HHS began granting the waivers after insurers threatened to raise premiums dramatically or drop their coverage all together rather than pay for the additional coverage required under the reforms.

In all, 1372 waiver requests have been approved so far, according to the HHS, while just 92 requests have been denied. Several requests came from the San Francisco Bay Area because the region uses a third-party health care administrator called Flex Plan Services. In March, Flex Plan Services submitted waiver requests for 92 of their clients, including 69 in California, 20 in Washington state, two in Georgia and one in Alaska, HHS and congressional offices told Hotsheet.

Steve Larsen, director of the Center for Consumer Information and Insurance Oversight, a division of the HHS, told Hotsheet, "HHS applied the same standard to the application from Flex Plan Services that it uses when reviewing any application for a temporary waiver."

He added that the waivers, which expire after one year, "are necessary to help ensure that the waiters, dishwashers, maids, home health aides, and other hardworking people can keep the health coverage they have, while we transition to 2014, when they will have access to affordable coverage in a competitive marketplace."

Drew Hammill, a spokesperson for Pelosi's office, said that the Democratic leader had nothing to do with the waiver requests or their approval. He added that the waiver process will be elminated in 2014, once the state-based health care exchange system created under the health care reforms is in place.

"It is pathetic that there are those who would be cheering for Americans to lose their minimum health coverage or see their premiums increase for political purposes," Hammill said. "The complaints coming from this crowd that supports ending Medicare is just another example of putting politics first."

Update: Richard Sorian, assistant secretary for public affairs at HHS, published a post on the White House blog this afternoon to address the controversy. He said "there has been no shortage of confusion and deliberate obfuscation on this issue" but said the Obama administration has been "completely transparent" about the process, publishing clear guidance on the application process on the HHS website and posting a list of granted waivers.

[Mortarman429]

We would like Virginia to be able to just opt out. Dont pay in, dont get any benefits.

[wfw3536]

This just shows how these politicans are so 2 faced and only looking out for themselves and the folks who vote for them. If this health care bill was so great then why do we need any waivers.

[pasha128]

Because of the phased nature of the Health care reform act that was included to save money.

[bassinapple]

The fact that CBS believes that only Conservatives are 'upset' about these waivers shows just how out of touch our media is. Every american should be outraged. It is sad that CBS, the once proud network that gave us 60 Minutes and their investigative reporting, reduces itself to apologizing for Pres. Obama. It explains why Couric has been rejected by American viewers.

[pasha128]

Massachusetts can improve on RomneyCare for a permanent state wide exemption, Vermont is proposing a single payer alternative for a future permanent state wide exemption.

[bassinapple]

I am looking forward to th 2012 election when Sarah Palin exposes not only the Obama administration but our media for coverning up this corruption.

[WeHappyFew]

She is free to do so at anytime,no?

[ammo17]

do as i say not what i do.you would be surprised how many waivers the president has given out already.our whole system of government is corrupt from the whitehouse to congress.lobbyist and big oil run our government.our politicians cannot make a decision unless they ask a lobbyist.

[Smokey75]

I thought this bill was sold as a money saver and it would reduce costs? If that is true then why have thousands of companies and unions asked for and received waivers due to them not being able to afford the added costs as a result of the bill.

Its amazing the entire state of Maine got a waiver because costs were going to go up so high that their one major insurer was going to leave the state. This just proves this was never about saving money it was about creating another entitlement program to give more handouts to the dead beats of the democrats base.

[pasha128]

The current exemptions are temporary (one year) based on the application of insurers to maintain current coverages until the full HCR law takes effect.

Smokey believes that an insurer needs $0.35 of every $1.00 in premiums to pay for overhead - management salaries, insurance company workers, etc. and NOT TO PROVIDE any medical services to the person paying the premiums. The proposed national standard would limit those expenses to $0.20 of each $1.00; These one year waivers are to allow private insurers to revamp their operations reducing overhead to be compliant with the law.

http://thehill.com/blogs/healthwatch/health-reform-implementation/148179-maine-gets-reprieve-from-health-reform-insurance-requirement

Some states have applied for permanent exemptions where the state is creating a customized solution for their own health care issues in accordance with the law. Massachusetts can improve on RomneyCare for a permanent state wide exemption. Vermont is proposing a single payer alternative for a future permanent state wide exemption. The only reason many states are getting the federal alternative is that their governors (mostly Republicans) are refusing to act in the best interests of their own constituents; defaulting actions in this are to the Federal government in accordance with provisions required by Republicans to break the filibuster on Health Care Reform.

[orangeirvineca]

by variablespanner May 17, 2011 10:15 PM EDT
Actually given that the law supports each state determining a local means to achieve the goals of increased health care coverage. The vast Majority of REPUBLICAN governors are abdicating responsibility for correcting Health Care coverage issues in their states to the Federal Government. If they were not wasting time on lawsuits those same Republican Governors could be impressing their constituents with a custom program to address the needs of their particular state.

---->Can you answer this question: what exactly are Democratic governors across America doing now then? Are they addressing the needs of their particular states or are they put the states' future on the Obamacare?

You have not been able to explain to us how Democratic governors are any better than Republican governors. Trashing Republicans is not productive unless you can prove to us how Democratic governors are different from all these Republican governors.

[RobAla]

Give the entire nation a waiver from this horrible health care bill!!! Repeal the stupid thing!!!!

[btrask3]

Well, I guess Pelosi is just another arrogant, incumbent, corrupt politician who sells her vote for favors.

And exempts businesses in her own district from the Harry, Nancy Barack Health DEBACLE!

[Sure_sure]

Health reform waivers granted upset conservatives. Really? That's the story here? Surely you're kidding. 20% of the waivers in one state would be remarkable, much less one district. Here's a suggestion. Pretend like Bush is president and the district was Boehner's and then report on it.