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Does Obamacare include a bailout for insurance companies?

January 13, 2014

 As bad as Obamacare appears to be on the surface it might even be worse than we think if this story is true, for it is being reported that the Unaffordable Care Act includes a taxpayer funded subsidy to insurance companies:

Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.”  How can this be?  Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them.  The other three-quarters will be borne by American taxpayers.

For some reason, President Obama hasn’t talked about this particular feature of his signature legislation.  Indeed, it’s bad enough that Obamacare is projected by the Congressional Budget Office to funnel $1,071,000,000,000.00 (that’s $1.071 trillion) over the next decade (2014 to 2023) from American taxpayers,through Washington, to health and life insurances companies that offer the best life insurance.  It’s even worse that Obamacare is trying to coerce Americans into buying those same insurers’ product (although there are escape routes).  It’s almost unbelievable that it will also subsidize those same insurers’ losses. 

But that’s exactly what it will do—unless Republicans take action.  As Laszewski explains, Obamacare contains a “Reinsurance Program that caps big claim costs for insurers (individual plans only).”  He writes that “in 2014, 80% of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example.”

  So, in addition to paying higher premiums as a result of mandated coverage which many Americans do not need we will also be on the hook for subsidies given to the insurance companies to help offset their losses. Tell me again how this make healthcare more affordable, and tell me again how this makes Barack Obama the middle class warrior he claims to be. Talk about a double whammy!

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13 Comments leave one →
  1. January 13, 2014 8:48 pm

    Reblogged this on Brittius.com.

    Like

    • January 13, 2014 9:07 pm

      Thank you.

      Like

      • January 13, 2014 9:08 pm

        You’re welcome.

        Like

  2. January 13, 2014 9:33 pm

    Reblogged this on Cold Dead Hands Days and commented:
    Oh this is expected..

    Like

    • January 14, 2014 6:30 am

      Thank you.

      Like

  3. January 13, 2014 9:33 pm

    I stand amazed at what the liberals managed to include in one piece of legislation. Is there nothing they did not cover?

    The people who voted for this disaster should be ashamed of themselves.

    Like

    • January 14, 2014 6:31 am

      With 2,000 pages I am sure they covered all their bases.

      Like

  4. Chris permalink
    January 13, 2014 9:47 pm

    Yep the plan that keeps on giving. This issue has been talked about for a while , but has been lost due to the more pressing problems. The Rep are supposed to have a bill to stop this from happening.

    Sen. Marco Rubio, R-Fla., along with a half-dozen other Republican senators, introduced the “ObamaCare Taxpayer Bailout Prevention Act” on Tuesday. It would strip a provision in the Affordable Care Act pertaining to so-called “risk corridors,” which could allow the government to pay insurance companies to offset financial losses.

    This will go nowhere.

    Like

    • January 14, 2014 6:33 am

      I am sure it will not go anywhere. The Democrats claim they are willing to make changes to the bill to improve it, but they really are not because if changes are made it means there was a problem in the bill and they are still unwilling to admit that.

      Like

  5. January 14, 2014 12:17 am

    Of course this news isn’t surprising to much of America. I even believe that Comrade Obama expected this to happen. So if a bailout happens then what? The insurance industry receive much needed help just in time to reorganize and realize that they need to raises cost even more. Obamacare needs to crash and burn on its own so America can be relieved from this Socialist healthcare plan that will do nothing but destroy the American economy.

    Like

    • January 14, 2014 6:35 am

      The problem is, as I see it, that once Obamacare crashes and burns the Democrats will claim it was because the law didn’t go far enough and will use the crash to push for the endgame–single payer.

      Like

  6. January 14, 2014 12:17 am

    Reblogged this on My opinions on America's issues and commented:
    And the games goes on..

    Like

    • January 14, 2014 6:35 am

      Thank you.

      Like

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