Trillion Dollar Insurance Company Bailout Is Coming – Update

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via legal insurrection

Branco cartoon via legal insurrection

 

Update: At 8 pm, Reuters reported that the payment mechanism for Obamacare has not been built yet. Mr. Obama will 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 has been demonizing insurers for years and now he is going to trust them for hundreds of billions of dollars?

Not only do we have a trillion dollar bailout in the wings, he is going to put insurers on the honor system!

Read about the bailout below.

 

Original Story: The White House will most likely bail out the insurance companies with taxpayer money in the coming months. The Administration can spend up to a trillion dollars without even going back to the taxpayers or Congress for approval.

Mr. Obama will delay the costs of the new insurance policies for one year by bailing out the insurance companies with a trillion dollars already set aside by the Obamacare law.

Tens of millions will lose their health insurance in the coming months. More are being forced onto Medicaid – free government healthcare – than are paying. Insurers need 7 million young and healthy people to sign up to pay for the sick and for them to keep afloat.

Mr. Obama is concerned that one repercussion could be the failure of Obamacare. He won’t let that happen.

The solution is provided for in the Obamacare bill. There is a provision that allows for a trillion dollar bailout of the insurance companies. It seems the writers of the bill planned for this eventuality.

Because of a provision in the bill, HHS has the power to use our tax money to reimburse insurance companies up to 80% of their out-of-pocket costs for up to three year’s.

According to Americans for Prosperity, 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.

Obamacare has a permanent ‘risk corridor’ provision built into it. Usually a mechanism like this is used to reduce the insurer’s pricing risk but Obama is going to use it to bail out the insurance companies.

Marco Rubio is working hard to get a bill passed to eliminate the ‘risk corridor’ 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. Sen. Rubio has put through a bill, the Obamacare Taxpayer Bailout Prevention Act (H.R. 3541) to stop the bailout.

Mr. Obama came up with a ‘fix’ mid-November that was never intended to work. He said that insurance companies could keep people on their deficient plans for one year. He won’t allow this to be done legislatively and has said he will veto any bill that comes across his desk which means that the insurance companies would have to break the law to allow people to stay on their plans.

He never intended that to be the fix. He intends 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 doesn’t even have to break the law this time to spend the trillion dollars.

This will keep Obamacare going long enough for him to get his single payer in place.

Mr. Obama has spent inordinate amounts of time demonizing the insurance companies but he is willing to give them a trillion dollars to bail them out so he can reach his ultimate goal of controlling the healthcare of every person in the United States. If you don’t have control over your own healthcare, you have no control. There is nothing more important than your health.

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