Maine Receives a Health Care Waiver?

On a previous CS blog, I discussed some Republican states that had reprieve from the new Obamacare laws. On Tuesday, Maine was the first state to receive a waiver from the health care overhaul. Maine received the waiver in fear that the overhaul would destabilize the state's market because of individual health insurance companies.

Maine's individual insurance market has been volatile, with big premium increases attributed in part to the small number of enrollees and lack of competition. There have been fears the market could collapse altogether.

Relying solely on a few companies for financial stability, has proved disastrous in the US's economic history. It seems that the HMO's are buying time to get all they can from their customers.

 The Affordable Care Act allows states to petition to delay the federal standard until 2014 on how much money from premiums must go to medical care for the individual market. Administrative costs tend to be higher on those plans than on insurance plans provided through employers.The federal law envisions that by 2014 there will be health insurance exchanges to provide individuals with new, affordable options for health care options.

 Trusting the insurance companies to keep their word is a large leap of faith by the government, but it seems that there isn't another option other than to introduce the new plan slowly.