AS THE island continues to grapple with the interpretation and implications of the Patient Protection and Affordable Care Act, Sen. Dennis Rodriguez has asked Attorney General Lenny Rapadas for legal advice on the issue.
In a letter to the AG, Rodriguez expressed concern over a “loophole” in Obamacare that allows health insurance companies to avoid or minimize the medical loss ratio by transferring money to a separate company that they have set up. By doing so, Rodriguez said health insurance companies can avoid paying rebates.
“I want the Attorney General to closely look into this legal loophole issue. But regardless, I intend to take legislative measures to ensure that any loopholes that might allow any company to circumvent the spirit of the Affordable Care Act are permanently closed,” Rodriguez stated.
The senator also asked for clarification on whether the individual mandate of Obamacare applies to Guam and if the employer mandate applies to private insurance companies on Guam.
Rodriguez also asked if Guam will be held liable if the U.S. Department of Health and Human Services sets up a health exchange on Guam and if there are any other options besides a federally-facilitated exchange or a state-based exchange.
As required by the act, all states must have a state-based or federally-facilitated exchange by the first day of January 2015.
Rodriguez also inquired what the ramifications to Medicaid will be if Guam opts out of an exchange and if that would affect the annual increase in federal matching funds.
