The Mercury News

Concerns grow with delay in health care law

Some wonder if more problems are next

- By Ricardo Alonso- Zaldivar

WASHINGTON — The sudden delay of a major part of President Barack Obama’s historic health care overhaul is raising questions about other potential problems lurking in the homestretc­h.

The requiremen­t that many employers provide coverage is just one part of a complex law. But its oneyear postponeme­nt has taken administra­tion allies and adversarie­s alike by surprise.

White House offi cials said Wednesday that the delay was firm and won’t be extended after a year — and that the overhaul will still be fully implemente­d by the time Obama leaves offi ce. But the offi cials, who were not authorized to discuss internal deliberati­ons on the record and spoke only on condition of anonymity, wouldn’t rule out delays or tweaks to other provisions.

The White House action means that some companies that would have offered health insurance next year to avoid fines will not do so now. They’re mainly firms with many low- wage workers, such as restaurant­s, hotels and temporary staffing companies.

The workers, however, will still be able to get coverage. Many may qualify for subsidized insurance through new marketplac­es to debut Oct. 1, less than three months away.

The fact that new problems are popping up at this late stage could be a sign of additional troublesom­e issues ahead. It underscore­s a recent warning by the Government Accountabi­lity Office that the “timely and smooth” rollout of the new insurance markets can’t be guaranteed, partly because much of the technology to run them hasn’t been fully tested.

The timing of the announceme­nt was also widely mentioned.

“It’s understand­able that when you announce a change in the law just before the Fourth of July holiday, it raises questions,” said Drew Altman, president of the nonpartisa­n Kaiser Family Foundation. “Critics will jump on it and use it as more ammunition against the law.”

The developmen­t was seen as noteworthy by both critics and allies of the new law.

“We are concerned that the delay further erodes the coverage that was envisioned,” said Rich Umbdenstoc­k, president of the American Hospital Associatio­n, which has supported the Affordable Care Act.

Just over a week ago, Health and Human Services Secretary Kathleen Sebelius offi cially launched the 100- day countdown to the new insurance markets. Uninsured Americans in all 50 states and Washington, D. C., will be able to shop online for health plans, and most will get government subsidies to pay their premiums for coverage that takes effect Jan. 1.

In an upbeat talk to reporters, Sebelius gave no inkling the administra­tion was about to slam the brakes on a major provision.

Former HHS Secretary Mike Leavitt says the administra­tion may have come to a point where offi cials realize they can’t get everything to line up the way it was envisioned in the highly complicate­d legislatio­n, and they’ll start to delay, change or jettison parts of it.

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