Does Obamacare include a bailout for insurance companies?

 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!