Barack Obama couldn’t even set up a website, much less a healthcare plan that works. Obamacare is dependent on taxpayer dollars being constantly funneled into it and Medicaid, the “free” healthcare is responsible for almost the entire increase in healthcare enrollment. Most of the Obamacare enrollees are receiving subsidies. One of the fatal flaws in the program that has been overlooked is that of the “risk corridor” but it’s moving front-and-center now as Obama tries to use it to bail out insurance companies.
Insurance companies can’t give out all the services he demanded they give and stay solvent without raising the premiums astronomically, so Obama’s plan was to use the risk corridor provision in the bill to bail out insurance companies when they inevitably decide to pull out of Obamacare.
Marco Rubio has temporarily stopped it and accelerated the inevitable collapse of Obamacare, but I wouldn’t get too excited yet.
A 2014 budget measure inspired by the Florida Republican is pushing some insurers to drop out of the ObamaCare exchanges. Instead of allowing HHS to dip into general funds for risk-corridor payments, Rubio’s rider restricted those payouts to funds collected from taxes on insurers.
It forced HHS to cut expected risk corridor payments to pennies on the dollar, and prompted the closure of more than half of the co-ops launched by HHS to provide supposedly low-cost coverage. Now that United Healthcare has signaled that it may cut its losses and get out of the ObamaCare market, The Hill credits Rubio with starting the death spiral many predicted when Democrats first passed ObamaCare.
Rubio does deserve a lot of credit because he has been on this relentlessly since 2013 and vowed he would do something to stop the bailout.
“So far, we’ve succeeded in stopping the Obama administration from bailing out healthcare companies under ObamaCare, and it’s critical that Congress once again stand with taxpayers to stop any taxpayer bailout of health insurers from happening,” Rubio wrote in a letter to GOP leaders of both chambers on Tuesday.
The White House wants to restore access to deficit spending to fund the risk corridor payouts. Shocker!
Without the trillion dollar bailout, Obamacare will go into a death spiral. It was a bad bill, written badly by special interests.
The original authors of Obamacare put in a provision that would bail out health insurance companies to the tune of $1 trillion dollars.
This was all done outside of Congress.
Obama always meant for the insurance companies who cooperated to be bailed out if necessary.
According to Americans for Prosperity, under the original risk corridor provision, if the cost of insuring individuals under Obamacare is 3% higher than estimated, the companies receive a 50% taxpayer reimbursement for the difference. If it is 8% higher, the reimbursement is 80%.
When Obamacare passed, with bribes I might add, the American people were not told the government could bail out insurance companies.
Usually a mechanism like the risk corridor is used to reduce the insurer’s pricing risk but Obama is going to use it to bail out the insurance companies.
During the 2014 budget battle, Marco Rubio was successful in getting a measure through that changed the provision.
The only way Mr. Obama can ‘fix’ the problem of keeping people insured is to bail out insurance companies using this provision and our tax money.
Mr. Obama always intended to give the companies a temporary lifeline – a bailout of as much as a trillion dollars.
According to the Congressional Budget Office (CBO), the PPACA (Obamacare) has already committed $1.075 trillion to insurance companies through exchange subsides and other related government spending.
Mr. Obama didn’t even have to break the law to spend the trillion dollars.
This isn’t the first time he paid off his cronies, the once-demonized health insurance companies.
In December 2013, Reuters reported that the payment mechanism for Obamacare has not been built yet. Mr. Obama said he would let the insurers estimate what is owed them in subsidies and the government will cut them a big check with our taxpayer money.
The president had been demonizing insurers for years but decided to trust them for hundreds of billions of dollars. He put insurers on the honor system!
They weren’t able to do it easily because of the time, accounting and paperwork needed to make it happen. They never expected that they would have to do what the government was supposed to do.
Obama’s people said at the time that if they overpay insurers, they will ‘true up’ later.
Obama operates like he’s running a crime syndicate.