New Obamacare Exemption: All U.S. Territories (After Years of Complaining)

From American Samoa to the Virgin Islands

In a letter to the lieutenant governor of the U.S. Virgin Islands, Marilyn Tavenner, the administrator of the Centers for Medicare and Medicaid Services, informed him that the Virgin Islands, and other U.S. territories, would be exempt from the bulk of Obamacare. The announcement comes after years of complaints about the territories, who were being forced to comply with Obamacare while residents were not mandated to enroll and the territories were exempt from receiving federal subsidies. As Tavenner explained (PDF):

Currently, the Department uses the existing Public Health Service Act (PHS Act) definition of "state" for new PHS Act requirements and funding opportunities included in title I of the Affordable Care Act. Under this definition, the new market reforms in the PHS Act apply to the territories. We have been informed by representatives of the territories that this interpretation is undermining the stability of the territories' health insurance markets.

After a careful review of this situation and the relevant statutory language, HHS has determined that the new provisions of the PHS Act enacted in title I are appropriately governed by the definition of "state" set forth in that title, and therefore that these new provisions do not apply to the territories. This means that the following Affordable Care Act requirements will not apply to individual or group health insurance issuers in the U.S. territories:1 guaranteed availability (PHS Act section 2702), community rating (PHS Act section 2701), single risk pool (Affordable Care Act section 1312(c)), rate review (PHS Act section 2794), medical loss ratio (PHS Act section 2718), and essential health benefits (PHS Act section 2707). Specifically, under this interpretation, the definition of "state" set forth in the PHS Act will apply only to PHS Act requirements in place prior to the enactment of the Affordable Care Act, or subsequently enacted in legislation that does not include a separate definition of"state" (as the Affordable Care Act does).

 Check out Reason's special Obamacare issue here.

Comments

[JohnLocke]

Hmm… plot to get people to relocate to the Virgin ISlands?

[OneOut]

I’m first? I’M FIRST !

First I would like to thank God *extends arm with index finger pointed while hitting a quick Tebow*, I would like to thank all the Reason commenters for making this possible. My thanks goes out to Tony and his sockpuppets, craiginmass, and other liberal derps for providing the humor. Sarcasmic, Fist, Sevo, John, etal for their arguments against the comedic foils already mentioned. I want to say thanks to my parents who showed me the way, my agent, my PR people, and my manager Casey who is also my beautiful young wife who inspires me to carry the white man’s burden.

You love me…you really really love me ! These are tears of joy.

[OneOut]

Damn squirrels and JohnLocke.

Damn you !

*shakes fist and bares teeth*

[Greendogo]

You’ll always be first in my book, Champ.

[NotAnotherSkippy]

But I thought “State” didn’t mean an actual state. Isn’t that the argument for subsidies?

[OneOut]

I get it.

[brobbs]

Not just “state,” but “a state.” Even less ambiguous.

But no, we were supposed to read their minds, not the words they wrote in the law.

[Nick H]

Does this mean companies don’t have to provide all forms of contraception?

[Bgoptmst]

Only if they are doing business in the Virgin Islands

[Policywonk]

Oops, the Administration changed its mind again. (And I used the term “mind” loosely.) (And yes, it’s singular “mind,” as in “hive mind.”).

Gee, I wonder what they’ll change their mind on next? Stay tuned for the exciting adventures of the Flip Flop* Administration!

*Note, it’s totally cool to flip flop if you’re a Dem!