Former FTC Commissioner: Obamacare Website Violates Federal Regulations

If the Obamacare website was a private business, it would be “taken to the shed and horsewhipped” for many Federal Trade Commission and Consumer Financial Protection Bureau violations, says former FTC Commissioner Orson Swindle.

The former commissioner, who headed the FTC from 1997 to 2005, told National Review Online, that the FTC requires that companies provide every possible bit of information upfront about a purchase, and HealthCare.gov doesn’t do that.

“Businessmen would lose their businesses, salesmen would lose their licenses — that’s the kind of thing we are talking about here,” Swindle said. “The bottom line is that no private entity would be allowed to get away with what the Obama administration is trying to get away with.”

The site’s often-documented woes, when added to President Barack Obama’s promises that Americans can keep their health insurance would likely be considered deceptive advertising, a violation of the Federal Trade Commission Act that prohibits “unfair or deceptive acts or practice in or affecting commerce,” the National Review reports. The act prohibits “representation, omission or practice that is likely to mislead the consumer,” that would lead customers to choose differently “but for the deception.”

The site also withholds information from visitors about the actual prices of policies in the exchanges, not telling users how much the policies cost until accounts are created requiring personal and financial information.

A recent CBS News probe also showed the website “dramatically underestimates” the price of health plans.

For example, the site’s categories divide users into the age categories 49 and under or 50 and older. The first age group’s prices are averaged on what a 27 year old would pay, while the later group quotes prices for people much older than 50, giving prices an industry expert called “incredibly misleading for people that are trying to get a sense of what they’re paying.”

In addition, the website does not adequately protect sensitive information and has been attacked by hackers, as it had only completed a partial assessment  of the site’s security features before it launched on Oct. 1.

The FTC Act prohibits endangering customers by failing to maintain site security, and takes enforcement action on companies that don’t do so. Swindle said that such violations often bring referrals to the Department of Justice for criminal charges.
Related stories:

• Obamacare Website Cost $ 634 Million, Faces Months of Glitches
  


• Obamacare Website Manager in Dark About Security Flaws

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Former FTC Commissioner: Obamacare Website Violates Federal Regulations

OK Insurance Commissioner Doak says his ObamaCare “fears have been confirmed”

By Patrick B. McGuigan | Oklahoma Watchdog

OKLAHOMA CITY – Oklahoma Commissioner of Insurance John D. Doak says individual health insurance premium rates in the state will jump dramatically

DOAK’S WORST FEAR CONFIRMED: Oklahoma Insurance Commissioner John Doak says his agency’s “worst fears have been confirmed” concerning the Affordable Care Act. Individual health insurance premiums will jump more than 30 percent in 2014, he said.

in the coming year. The estimate from the state Department of Insurance which Doak administers is based on filings from insurance firms selling health policies in the Sooner State.

This week, Doak said Oklahomans can expect to pay more for policies under the Affordable Care Act’s “federally-facilitated marketplace.”

“Our fears have been confirmed. For some consumers, the cost of health insurance will increase significantly. This is more proof that ObamaCare will hurt Oklahoma families and businesses. I continue to support Attorney General Scott Pruitt’s lawsuit to overturn this overreaching and potentially disastrous federal law,” Doak said.

Pruitt has emerged as a leading national critic of ACA implementation. Under his direction, the state has filed a lawsuit challenging many provisions of the legislation, including the Internal Revenue Service rules punishing “large employers” (including governments) with penalties if exchanges are not created within a state.

Oklahoma is one of 34 states in that category.

While actual rates for individuals will vary depending on factors such as age, location and tobacco use or non-use, the projected cost hikes will include both new policies in 2014 and renewal of existing policies, due to implementation of the federal legislation widely dubbed “ObamaCare.”

According to Doak, the increased rates are driven by:

• The morbidity factor or market risk of guaranteed-issue entrants with no annual or lifetime limits;


• The incorporation of Essential Health Benefits to make plans ACA compliant;


• Taxes and fees being passed through the rates to the consumer.

Frank Stone, chief actuary for the state agency, said, “From an actuarial standpoint, this confirms the obvious. Insurers must increase their premiums due to the additional requirements of ObamaCare.” In the small group market, which has had guaranteed issue in Oklahoma since 1995, the rate hike will range from 10-25 percent, Stone said.

Doak’s staff pointed out that Individual consumers may not have to pay the full premium because of federal tax credit subsidies. As Doak pointed out, the subsidies create “additional hidden cost to Oklahoma taxpayers.”

You may contact McGuigan, bureau chief for the Watchdog.org network in Oklahoma City, at Patrick@CapitolBeatOK.com 

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OK Insurance Commissioner Doak says his ObamaCare “fears have been confirmed”

Steven Miller: Acting IRS Commissioner Resigns Amid Scandal

During President Obama’s extremely brief press conference from the East Room of the White House today he informed the American people that Tresurary Secretary Jacob Lew asked for and received the resignation of acting IRS commissioner Steven Miller. Obama also called for increased safeguards and clearer laws in order to prevent these abuses of power from happening again. Obama will take questions at another press conference scheduled for tomorow. Miller’s resignation comes amid a week of scandals that have rocked the White House. 

The Inspector General released its findings today, here are the highlights. 

PolicyMic

Steven Miller: Acting IRS Commissioner Resigns Amid Scandal