Obama Quietly Increases Bailout Money For Insurance Companies Losses Sustained Because of Obamacare
Why do you think they were all in? : They knew, one way or the other, they were getting paid:
John Q. Public got his pockets picked last weekend by ObamaCare : bureaucrats.
In a sneaky and illegal maneuver after close of business Friday, the Obama administration proposed a new rule increasing bailout protection for insurance companies that sell ObamaCare : exchange plans. The rule —using taxpayer money, of course – is designed to protect the companies from losses.
It’s illegal, because no president, including Obama, has the constitutional authority to rewrite the laws. The president’s sworn duty is to “take care that laws are faithfully executed.”
The Affordable Care Act, as written and enacted in 2010, contains a bailout provision, Section 1342. It makes insurers whole for losses they were certain to incur by virtue of offering “affordable” plans.
Such losses were inevitable, because ObamaCare : rules make it impossible for an insurance company to offer “affordable” plans and still cover costs. The premiums have to cover a long list of mandatory benefits, as well as $100 billion in taxes that the law imposes on insurers over the decade. Most significantly, the premiums have to cover the cost of caring for seriously ill people for the same price as healthy people.
Every state that tried this community rating scheme (including New York ) has seen premiums soar as the healthy, unwilling to foot the bill, stop buying insurance.
The bailout provision was inserted in the law by design to encourage insurers to set premiums too low. That helps the law, and its Democratic backers, look good. It was deception from the start, and a real effort to make a fatally flawed scheme appear as if it is providing affordable health plans.
Insurance companies were on this. : There’s no way they would have been such supporters if they weren’t.
What do you think?
Hat Tip: : Weasel Zippers
Duane Lester is co-founder of All American Blogger, and the primary writer. Following graduation, Duane entered the United States Navy as a journalist. He spent five years touring the world, reporting on local news and sports. Following his enlistment, Duane spent almost 10 years working with adjudicated youth in residential treatment environments. Duane discovered politics after September 11. He credits Erich "Mancow" Muller for opening his eyes to his conservative beliefs. Since then, Duane has devoured books and literature on politics, reading everything he can from Adam Smith to Larry Elder to Thomas Sowell. He refers to his style of politics as "conserva-tarian", a mixture of conservative and libertarian beliefs.