One of the least publicized aspects of Obamacare is its bailout of insurance companies. Far from warring against them as Hillary did in 1993, the Obama program is their new best friend.
Robert Laszewski, a health care consultant, points out that Obamacare is really a giant reinsurance program, capping the liability of health insurance companies. Under its provisions, the first $45,000 of payments to an insured patient come from the company’s coffers. The taxpayer, through the federal government, obligingly picks up 80 percent of the remainder.
And, each year, insurance companies are to estimate their payouts during the coming twelve months. If they miss or the costs are greater than they supposed, the feds will pick up 80 percent of the overage. It is a kind of cost plus deal for insurance companies.
All told, insurance companies are to get $1 trillion in subsidies over the next ten years, a staggering amount of tax money. They will make out far better than General Motors, defense contractors or any TARP recipient banks.
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1 comment:
People need to understand the 3Rs before they call this a bailout. I'm not a fan of the insurance company, but in this case they are being required to set rates with no information. With the changes brought on by this piece of crap bill, the insurance company is setting rates with half the necessary information. e.g. preexisting conditions.. the actuaries have no information with regard to how many people with preexisting conditions will be entering their plans. This creates significant risk on the insurance company. If they are backed into the corner and they have no plan to reconcile, they will mitigate that risk by charging even higher rates... or go out of business and they YOU get what King Barry really wants... government run health care. Remember in our area some of the insurance companies are not making big profits as this guy suggests.. as an example, CareFirst is a not for profit. they are regulated and operate on a very low margin. This is not like the car industry bailout.. this is necessary to keep from moving to government healthcare.. please email Andy Harris and tell him to start impeachment on king Barry before he destroys America.
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