Overnight Healthcare: ‘Unprecedented’ demand for ObamaCare at key deadline

Federal health officials say they are seeing “unprecedented” demand on the ObamaCare marketplace on the final day for people to get insured and avoid hundreds of dollars in fees.

Traffic on the federal marketplace website HealthCare.gov spiked to an “all-time high” of 185,000 simultaneous customers Monday night, and demand continued to soar Tuesday morning, according to the Department of Health and Human Services (HHS).

{mosads}”During this period of unprecedented traffic, HealthCare.gov remained open for business and ready to sign people up for 2016 health plans,” Lori Lodes, a spokeswoman for HHS, said in a statement.

Officials in California, who manage the largest state-run marketplace, also reported a flood of interest Tuesday.

“Once again, Covered California is seeing an incredible surge of interest, and thousands of people are enrolling at storefronts, insurance agent offices and community centers across the state every day,” Peter Lee, the executive director of Covered California, said in a statement.

With more than 1 million calls Monday alone, some customers were unable to get through and were asked to leave their phone numbers so that officials could call back after the deadline. Those customers will be given extra time to complete their applications while still meeting the Dec. 15 deadline. Read more here.

TAX DEAL WITH CADDY/MED DEVICE DELAYS NEARS Congress is closing in on a major tax deal expected to be unveiled Tuesday that would postpone two key ObamaCare taxes for two years.

The deal, which will cost more than $500 billion over 10 years, would postpone the “Cadillac tax” on expensive health plans and the medical device tax, according to a summary circulated Tuesday morning by negotiators.

Freezing the Cadillac tax is a top priority of labor unions who for years have pressed Democrats to get rid of the levy. The tax imposes a 40 percent fee on health benefits above a certain threshold.

The White House has opposed repealing the tax, but officials have signaled that President Obama would not veto the package over a two-year delay. Read more here.

MEANWHILE, WH DEFENDING THE TAX President Obama’s chief economist delivered a strong defense of the “Cadillac tax” on health plans Tuesday morning, just hours before Congress is expected to unveil a budget deal that would again delay the measure.  

“It’s really important to us that we don’t see that measure repealed, and we will work hard to prevent that from happening,” Jason Furman, chairman of the Council of Economic Advisers, said at a Politico Morning Money event.

The Obama administration has repeatedly said it wants to keep in place the Cadillac tax — as well as the medical device tax and the health insurance tax — but has come short of issuing a veto threat on the package. Read more here.  

ON TAP TOMORROW

Line-by-line analysis of the spending bill begins.

WHAT WE’RE READING

The best places for better cheaper healthcare aren’t what experts thought (NYT)

Allegations about Planned Parenthood and landfills, explained (Vox)

Groups challenge Walgreens’ decision to outsource health care to Catholic hospitals (Think Progress)

IN THE STATES

Latinos, other Medi-Cal recipients denied access to health care, activists allege (Mercury News)

California Public Retirement System sees specialty drug costs soar 32 percent (LA Times)

In year three, slower traffic on ObamaCare deadline (CT Mirror)

Arkansas panel nearing Medicaid expansion decision (Arkansas Democrat-Gazette)

ICYMI FROM THE HILL:

Sebelius: ‘Repugnant’ for states to reject Medicaid expansion

Hoyer: Dems will ‘strongly oppose‘ tax extenders package

House GOP leaders push back meeting on funding bill

Send tips and comments to Sarah Ferris, sferris@digital-staging.thehill.com, and Peter Sullivan, psullivan@digital-staging.thehill.com. Follow us on Twitter: @thehill, @sarahnferris, @PeterSullivan4