Posted on 11/18/2013 3:26:41 PM PST by servo1969
This must have been one of those backroom deals we heard so much about… Stuffed inside the Obamacare law passed by Democrats (with no Republican votes) is a provision that will reimburse insurance companies up to 80% of their losses due to Obamacare. Melissa Francis reported on FOX News:
“Marco Rubio has been out highlighting the fact that there is this ‘risk corridor’ where written into this law that nobody read is this idea that is insurance companies have 3% higher costs than they estimated as a result of who’s in these pools, they can recoup 50% of that money from the government, from you and me. 8% higher than what they estimated, they can recoup 80%!… This bailout of the insurance companies is the next big thing we’ll all be talking about.”
And, here we thought Democrats hated insurance companies.
[video]
Very likely with the way it’s going. If there is one thing to refuse to fund in the House, it’s this.
The public will be on our side if the Dems are pushing an insurance bailout in response to their own failures.
As always, like good socialist, they will pay for it with your money.
Hope it all comes out of the DNPs funds.
But, but, but, but, but...they told us OCare would be less than $1 trillion!!
I can’t believe they’d lie to us! LOL
This is old news. As a benefit of climbing into bed with the President, he promises that if the young and healthy do not enroll in the exchanges, he will make sure the venture still works for the participating insurers.
How long can such losses be financed at the expense of the taxpayers?
Wow, that’s just swell of them! I assume that the money is coming out of Democrat party funds? No?
This has been know for awhile. What it shows is the great uncertainty in terms of the makeup of the Obamacare Risk Pool. That’s hardly a surprise.
But note that at 80% reimbursement the Insurance Companies are operating at a loss. They’re not losing that much but they are still losing money. You are not going to keep them interested in that kind of business. Even at 100% it would still be ZERO PROFITS and they wouldn’t stick around very long for that kind of a deal.
This really isn’t as bad as it looks. It can only be a temporary thing while the Insurance Companies decide if this deal is any good.
And also note that if they do suffer losses in 2014 then the rates will have to go up to where there is no need for a subsidy in 2015 or they will still be losing money. Death spiral here we come.
When the states were booted from the senate, consolidation of power in Washington was guaranteed.
What was clear to the framing generation was overwhelmed in the 1910s progressive wave.
The wonder is that it took a hundred years to really descend into hard tyranny.
.....and wouldn't cost the tax payers one more red cent, or add to the deficit. In fact, people would be saving $2,000 - $2,500 a year on their premiums if obomacare was enacted as well!
bttt
Truth can hurt but isn’t necessarily “mean”, unless you’re a perpetually offended liberal. ;-)
And with some creative bookkeeping, the losses could work out very favorably for the insurance companies (and the Democrats, if they can figure out how to launder that money).
the bailout is going to be huge, hundreds of billions for sure
haha yes I was speaking from poor little barrys point of veiw......
lifes tough when your lifetime achievement turns out to have as little utility as a broken toaster.
I can almost hear barry discussing this with harry and nancy
Cant we call this HarryCare for a few weeks???
As I’ve said all along, the Chicago mob is all about crony capitalism, not doctrine.
Cut out the insurance companies, cut out a big source of lobbying dough and contributions.
The government doesn’t have any money to give. They’re so generous with YOUR money.
LOL!!!
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