A Taxpayer Bailout for ObamaCare – Insurance Companies “Too Big to Fail”
An American public already reeling from the catastrophic rollout of ObamaCare will more than likely be hearing an unfamiliar term being bandied about in the new year.
“Risk corridor” refers to a provision in the law that allows the government to “stabilize” premium costs for insurance companies during the first three years of the healthcare rollout.
If insurance companies’ “target” costs for providing healthcare has been miscalculated, the Department of Health and Human Services (HHS) will intercede on their behalf.
Syndicated columnist Charles Krauthammer illuminates the nature of that intercession. ”The insurers understand that they’re going to be completely ruined,” Krauthammer explains.
“And what’s going to happen as a result of this?
There’s only one way out, a huge government bailout of the insurers is waiting at the end of next year.”
More accurately, it will be a taxpayer-funded bailout, similar to the ones given to the banks and the car companies.
On Monday, November 25, the administration lowered the reinsurance threshold from $60,000 to $45,000.
This move will likely transfer billions of additional dollars from taxpayers to the insurance companies, even as it adds billions of dollars to the national debt.
And as Sen. Marco Rubio (R-FL) explains in a Wall Street Journal editorial, “ObamaCare’s risk corridors are designed in such an open-ended manner that the president’s action now exposes taxpayers to a bailout of the health-insurance industry if and when the law fails.”
He further explains that additional regularity rulings “have made clear that the administration views this risk-corridor authority as a blank check, requiring no further consultation or approval by Congress.”
He cites section 1342 of the Affordable Care Act, which was implemented last March.
To wit: “Regardless of the balance of payments and receipts, HHS will remit payments as required under section 1342 of the Affordable Care Act.”
Thus, for the next three years (at least), insurance companies will be “too big to fail.”
EIGHT WAYS TO OPT OUT OF OBAMACARE
America needs Obama-care like Nancy Pelosi needs a Halloween mask. –Jay Leno
Obama’s promised savings of $2,500 per year.
Obamacare to Increase Average American’s Healthcare Costs By More Than $7,000