Are State Exchanges Going Bankrupt?

Investor's Business Daily ^ | 02/11/2014 | IBD Staff

[IBD editorial writer]

Cost Curve: A little-noticed problem is fast emerging in states that decided to set up their own ObamaCare exchanges. Many of them face financial crises once the federal grant money runs out.

After taking nearly $4 billion in federal grants to set up and run their exchanges this year, 14 states and the District of Columbia are supposed to be self-sufficient by next year.

At least that's what the ObamaCare statute says (which these days doesn't mean much). But from the looks of it, many are heading into a fiscal brick wall.

[txhurl]

Can’t wait for Cruz to write about this.

[kingu]

While I greatly appreciate IBD, the only ‘crisis’ that Covered California faces is being unable to sustain half million dollar salaries, huge benefits, and an advertising splash worthy of a Hollywood blockbuster. They’ll have to choose which of those they get to keep, as they will still be swimming in cash.

If you’re unclear how this works, walk over to your benefits manager and ask if they can pull out the rates for the company health insurance. Look at the line items, and see how much you’re paying for Covered California or whatever your local health exchange (or the federal version..) And now multiply that by virtually every corporate employee in the United States.

[2001convSVT]

“Are State Exchanges Going Bankrupt?”

We can hope so!

[LibLieSlayer]

We can only hope... why not... America is bankrupt... morally and financially!

[TurboZamboni]

Richard Simmons wept.

[KarlInOhio]

Did they get a special discount by having the “Grand Opening” and “Going out of business sale” signs printed at the same time?

[nascarnation]

I’m sure the regime can send out some additional Lew/Yellin minibucks to get them through to 2017.

[tomkat]

             

Schadenfreude .. great taste AND less filling !

[Principled]

So my governor did save us money by not doing a state exchange...

what a surprise NOT

I hope my gov. prevents our state from bailing out those stupid enough to believe 0bama about creating an exchange

[dfwgator]

All by design....The whole purpose of ObamaCare was the pave the way towards Single Payer.

[ltc8k6]

How many “Obamacare enrolees” are enrolled in Medicaid?

[DJ MacWoW]

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[CA Conservative]

Employer-provided insurance is generally not part of the Exchange so they are not collecting the excise tax on those policies.

[LibertarianLiz]

So, the politicians in D.C. pushed thru legislation that no one in the U.S. wanted, so no one is signing up for it, and they are surprised? Why am I NOT surprised.

These policies seem to be worse than what the people had previously, more expensive, with prohibitively high deductibles. Yeah, I have no idea why people aren't signing up in mass numbers.

Ann Coulter is playing in my brain: "I wish I could be a liberal so that I could be constantly surprised by the obvious."

[Vaduz]

Everything Obama does causes heading into a fiscal brick wall it’s the story of his life he’s a pure loser with many followers.

[what's up]

HI has already said they will raise fees on insurance companies because they can't pay for the exchange. They had only 3,000 signed up out of a projected 100,000.

They also said that insurance companies will pass on the cost to customers. Projected to raise insurance costs 8 to 10 percent each year.

[steve86]

How many “Obamacare enrolees” are enrolled in Medicaid?

Now there's a question with a high degree of relevance to the article /sarc

[Liz]

THIS JUST IN---KATU-TV REPORT

PORTLAND, Ore. – You already know the process that led to the failed rollout of the Cover Oregon website was bad. But was it criminally bad? Former Republican state Rep. Patrick Sheehan told the KATU Investigators he went to the FBI in December 2012 with allegations that Cover Oregon project managers initiated the design of dummy web pages to convince the federal government the project was further along than it actually was. If Sheehan’s allegations are true, those managers could face time in jail for fraud. (Excerpt) Read more at katu.com ...

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Cover Oregon project managers initiated the design of dummy web pages to convince the federal government the project was further along than it actually was.

Tampering w/ web sites is electronic fraud and incurs multiple felonies..... falsification of govt documents is also a felony. But the crimes do not stop there.......

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OF INTEREST TO LAW ENFORCEMENT the FBI should interrogate O/Care exchange insider for evidence of multiple schemes to falsify documents to further insider schemes. The FBI should investigate any and all official documents submitted.

Crimes might include---conspiracy. collusion, falsifying offical documents (a felony), money laundering, tax evasion, extorting taxpayers, theft of govt monies, misuse of public office and official government positions.

SAMPLE LETTER TO LAW ENFORCEMENT
Taxpayers are urged to notify the FBI now.
FBI TIPS PAGE https://tips.fbi.gov

SUBJECT: Collusion, conspiracy, and bribery
IN RE: financial irregularities
REFERENCE: govt fraud, falsified documents, wire transfers, accounting fraud, etc.

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REFERENCE To date, the 14 states operating their own O/Care exchanges, plus the District of Columbia, have received nearly $3.8 billion to start and operate, according to the Associated Press tally. (SIGNIFICANTLY) some states are "stashing away" federal grant money for "assorted purposes," they say.

Using govt money for purposes not intended is a felony.

It's time the Bank Secrecy Act was mobilized----to determine the timing of holding opn the govt allocations, and how govt monies changed hands in the process.

======================================================

Taxpayers should demand to know the scope and dimension of multiple conspiracies by government insiders to collude in sub rosa deals and who might be personally profiting. This could be prosecuted under the Bank Secrecy ACT, RICO, and the Hobbs Act.

<><> L/E needs to examine the state exchanges' assorted bank accounts and state campaign accounts.

<><> Joint exchange bank accounts might be used to facilitate the transfer of campaign funds from one account to another.

<><> Democrats may have received payments for personal and private expenses, campaign expenses, credit cards, real estate subsidies and vehicle purchases as an incentive to go on record attacking conservatives.

<><> To cover their tracks, fake invoices might be created to show that money deposited into accounts was being used for legitimate govt purposes. The scheme might be advanced by issuing phony statements of payments from financial sources that actually covered the transfer of exchange funds for insiders and/or legislators' personal use.

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NOTE WELL Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes. “The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities,” the special agent in charge for Internal Revenue Service Criminal Investigation, explained.

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<><> L/E should get ahold of: (1) copies of exchange checks, (2) wire transfers, (3) account statements, (4) invoices, (5) bills, (6) delivery tickets, (7) correspondence including e-mail, contracts, loan agreements, and, (8) any other books or records. L/E should also explore (a) monies paid to brokers, sub- brokers, (b) family members, (c) mortgage brokers, (d) financial managers, and, (e) real estate agents, brokers, and developers.

<><> L/E should scrutinize state exchange accounts and campaign bank accounts for suspicious activites: (A) large deposits, (B) funds transferred from one account into another, (C) frequent requests for withdrawals.

<><> Bank records might also show diversions to secret LLC accounts, to money launder and to operate personal ventures---or to finance campaign activites.

Tax fraud can also be facilitated by withdrawals, gift cards purchases, credit card purchases and intra-bank transfers from foundation accounts into personal a/nd campaign accounts.

<><> A huge tipoff is whether bank withdrawals support campaign activities and luxurious lifestyle including payments for real estate, investment and stock holdings, jewelry, luxury vehicles, resort travel....... and gifts from luxury outlets for wives and mistresses.

Taxpayers demand the Bank Secrecy Act be used to prosecute govt fraud pronto.

And study exchange personnel and legislators' tax returns with a fine-tooth comb.....especially entries for "interest income."