I read this article today. It only reassures me that the "conspiracy theory" is reality.
We are now finding out that our tax dollars will be bailing out the insurance companies. Another little tidbit Mr. Obama neglected to share with the taxpayers.
Via: The Weekly Standard
Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.” How can this be? Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them. The other three-quarters will be borne by American taxpayers.
But that’s exactly what it will do—unless Republicans take action. As Laszewski explains, Obamacare contains a “Reinsurance Program that caps big claim costs for insurers (individual plans only).” He writes that “in 2014, 80% of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example.” For some reason, President Obama hasn’t talked about this particular feature of his signature legislation. Indeed, it’s bad enough that Obamacare is projected by the Congressional Budget Office to funnel $1,071,000,000,000.00 (that’s $1.071 trillion) over the next decade (2014 to 2023) from American taxpayers,through Washington, to health insurance companies. It’s even worse that Obamacare is trying to coerce Americans into buying those same insurers’ product (although there are escape routes). It’s almost unbelievable that it will also subsidize those same insurers’ losses.
In other words, insurance purchased through Obamacare’s government-run exchanges isn’t even full-fledged private insurance; rather, it’s a sort of private-public hybrid. Private insurance companies pay for costs below $45,000, then taxpayers generously pick up the tab—a tab that their president hasn’t ever bothered to tell them he has opened up on their behalf—for four-fifths of the next $200,000-plus worth of costs. In this way, and so many others, Obamacare takes a major step toward the government monopoly over American medicine (“single payer”) that liberals drool about in their sleep.
Senator Marco Rubio (R-FL) has submitted legislation to prevent the bailout of the insurance companies. Read Rubio's article:
"...By law, health insurers are leveling with their shareholders about how ObamaCare will hurt their bottom line. Now President Obama, Secretary Sebelius and ObamaCare’s supporters should level with American taxpayers about the law’s true costs and eliminate any chance for a bailout.
Unfortunately, we can’t just take the administration’s word that it won’t happen. Congress has to act, and it should approve legislation I’ve introduced to repeal ObamaCare’s risk corridor provision and stop any bailout. At just a page long, my bill is simple but would instantly wipe away the taxpayer's exposure to millions – and potentially billions – of dollars' worth of a bailout for insurance companies.
If the only way ObamaCare works is with a taxpayer-funded bailout of insurers, it’s yet another clear sign that the law can’t survive and isn’t worth saving.
While in office, I have worked with others to protect Americans from ObamaCare's damage – as patients, taxpayers, consumers and workers. While some immediate relief is possible, it's become clear that all of ObamaCare's damage can't be prevented forever, unless the law is repealed and replaced with market-based reforms that will make health care more affordable and accessible for all Americans..."