According to the (CBO) Congressional Budget Office, Obamacare already gives more than $ 1 Trillion in subsidies to insurance companies over the next ten years. The President’s new provisional extra fix could now result in his administration offering Insurers a Bailout totaling Billions of more taxpayer’s dollars, which is exactly what he said he wouldn’t do…period!
A little know provision called the “Risk Corridor” is set in place to pay insurance companies over the next 5 years. The White House is offering insurers money to offset their losses due to Obamacare. Centers for Medicare and Medicaid Services (CMS) Nov 14, 2013, released new guidance to State Insurance Commissioners implementing President Obama’s “fix” for people losing their insurance through cancellation notices.
Not only does it violate the explicit text of Obamacare itself but it also raises the possibility of insurers getting access to a new pool of bailout reserves. The administration latest plan waives many of the costly mandates included in Obamacare that are scheduled to take effect Jan.1, 2014. The “guidance” says that these requirements will be waived, in clear violation of the text of the law, for 1year for all plans renewed between Jan.1, 2014 and Oct.1, 2014. CMS also implies these waivers could be extended stating it will “assess… whether to extend the waiver beyond the specified timeframe.” Perhaps even delaying until after the Nov 4, 2014 election day?
The CMS guidance Nov.14, 2013 raised the possibility of using Obamacare risk corridor program to compensate insurers for their losses. Briefly stated, The Heritage.org says, “The risk corridor program shifts funds among insurers. It minimizes losses from carriers with sicker than expected enrollees by redistributing gains from carriers with healthier than expected enrollees.
CMS says, “The risk corridor program doesn’t need to be budget neutral; if the math demands it the government can pay out more than it collects through the program.” CMS comments imply it’s contemplating doing exactly that; not applying budget neutrality for the risk corridor program and using it to compensate Insurers for their losses.
If Insurance companies’ suffer any losses 3 years after the implementation of Obamacare, we the taxpayer’s are the ones who are going to reimburse and compensate the Insurance companies for their losses. This isn’t free market capitalism but it’s what Obama likes to call it to blame Capitalism for his socialized medicine plan not working.
Percent of people supporting the bailout (if) Ins. Company’s don’t profit from Obamacare plans:
Oppose 65% Support 19% Not Sure 16%
Labor unions are again exempt under this Obamacare Communist program for them. This bailout due to Obamacare losses for the “Evil” Insurance Companies comes under a Fascists program for them with this administration. We the Capitalist believing people are swinging in the breeze paying for it. Mr. Dictator makes a law, signs it in, then singlehandedly breaks it to smooth over the irate insurance companies by robing the kitty (Medicare) of the taxpayer again to pay his bribe. Does he really expect the American people to disregard these antics and forget that he broke another promise when the 2014 election comes along? I sincerely hope the people don’t forget and don’t get used to more lies as commonplace “business as usual’ and vote these Obamacare supporting politicians out of office.
In the final paragraph of the 3 page memo CMS implies it is exploring options to provide additional payments to insurers to offset their losses from this Obamacare debacle. The transitional policy wasn’t anticipated by health insurance insurers when setting rates for 2014, the risk corridor program should help ameliorate unanticipated changes in premium revenue. We intend to explore ways to modify the risk.
There is going to be nothing left [dollar-wise] of Medicare when Obamacare gets finished with it, because it’s funding all of its mistakes.
One other safety net for the Insurance companies I should mention is the $63.00 re-insurance fee that you will be charged included in your premium with Obamacare. Insurance Companies will have to start covering people with pre-existing conditions, riskier cases than before and of course it’s going to cost them more money.
What we didn’t hear about was that Obamacare had a provision in it that would pay Insurance company’s Billions of dollars to cover those risks. So, there is absolutely no risk for those evil pesky Insurance Company’s at all. The government for 3 years, (2014-2016) will levy a fee on Insurers per person of $63.00. That comes out to be somewhere in the ballpark of $25 Billion plus for 3 years.
2014 approx. $12 Billion – 2015 approx. $8 Billion – 2016 approx. $5 Billion
Unions are called self- insured and self- administered plans. They don’t go to Insurance companies for their Insurance plans; they do it in person themselves. They don’t want to pay the $63.00 fee. It appears that the White House is preparing a rule that will (specifically) exempt these self-administered plans from the fee which apply (only) to Unions.
Realistically, this is purely politically motivated. It’s costing the rest of America Billions of dollars to basically pay the unions to get Hillary voted in.
The President is a lawyer and a legal scholar. As a law student he was Chairman of the Harvard Law Review, debatably the most prestigious position that a young law student could ever achieve. He is presumed to know these things. He wrote the law and the briefs explain and are profound. His Justice Department was in front of the Judges arguing the very opposite of what he has been telling the American people. … Shameful!
I leave you with this thought from the Media worshipers and supporters of Obama.
L Z Granderson Liberal ESPN Columnist, on CNN, is justifying the President’s repeated lies about Obamacare, claiming Americans knew he did it for their own good. We believe in his heart that he has the best interest for the American people. Every President is going to lie to you…the question is, America, which lies can you live with?”