The Department of Health and Human Services (HHS) is granting temporary waivers to organizations that would not be able to meet the reform law’s new requirement for annual coverage limits.
As of last week, HHS had granted waivers to 222 organizations covering 1.5 million individuals. Though the number of groups receiving waivers has now more than tripled, the number of individuals covered by the waivers increased just 600,000 to 2.1 million.
The law gives HHS Secretary Kathleen Sebelius the flexibility to grant waivers to avoid disruption in the insurance market, but Republicans say the waivers are either gifts to Democratic allies or proof that the reform law isn’t working. However, a large number of businesses, in addition to unions, have received waivers.
The waivers have been granted to plans offering one kind of insurance and hundreds of so-called "mini-med" plans that offer limited health coverage to employees. The waivers are designed to preserve stability in the insurance market until new state-run insurance exchanges open in 2014.
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