Skip to comments.Obama Official: The Obamacare "Bailout" Of Insurers Will Be Financed By A New Tax On Everyone's Plan
Posted on 06/19/2014 6:39:48 AM PDT by Oldeconomybuyer
For months, there have been assertions that the mechanisms embedded in Obamacare, designed to offset losses that insurance companies will take this year on their exchange business, amount to a bailout of the insurance industry.
At the same time, it wasnt clear where the money to pay for these risk adjustments would come from in the first place.
Now we know where the bailout money is going to come from. It will be paid for by a new tax levied on the insurance companies.
Since Obamacare health plans were prevented from pricing products to reflect true risk, they were always going to have atypically high cost, and in turn, losses. The red ink was inevitable. Now all of us will be forced to pay for it, whether we have an Obamacare plan or not. That new tax will be passed onto everyone in the form of higher premiums.
(Excerpt) Read more at forbes.com ...
Ahh yes, charge everyone more to bail out the insurance companies who are going to provide nothing in the way of medical recompense until we also pay two to three times the premium costs as out of pocket expenses. Wow! What a deal.
Down with the kenyan tyrant and his national socialist party!
I hope obama voters simply love it.
Taxes solve everything! /s
Obamacare literally changes by the day.
This has gone from crazy to insane.
“Affordable” Care Act.
$2,500 per year savings for the average family.
sounds like that “surcharge” called uninsured motorist fund on our car insurance policies. I questioned this to my agent, he didn’t really have an answer but agreed with me on the point of it. I asked, if you are required to have insurance then why do we need to have this surcharge? I told him that I could get the quote, print my card, cancel my policy, especially if the uninsured motorist fund would pay for any damage I create.
From the article...
Mandy Cohen, the Acting Administrator of the Centers for Medicare and Medicare Services Center for Consumer Information and Insurance Oversight, delivered that message yesterday. Cohen was testifying before the House Subcommittee on Economic Growth, Job Creation and Regulatory Affairs. She said that if funding for the risk corridors cant be financed off the money that gets clawed away from profitable insurers (therefore allowing the entire scheme to remain budget neutral) then CMS has the authority, if not the intention to impose additional user fees on all health insurers to cover the higher losses experienced by the Obamacare plans.
They’re going to pay for ObamaCare with a tax on ObamaCare? Perhaps I’m missing something but it’s hard to see how that helps (except in the communist sense of redistributing wealth).
Remember, once the govt. starts bailing out the insurance companies then we have a de-facto single payer plan which the insurance companies become nothing more than administrators of and premiums are nothing more than taxes to pay for it.
We "can't wait" for this guy to become one of the members of the Fortune 500.
That’s the way I see it as well. The Insurance companies are basically utilities handling the transaction between the government and the insured person, but they are not necessary to the process. They basically were left in so that it wouldn’t look like single payer, but their capital and profits are irrelevant to the operation of the system.
How can they impose a tax without congressional approval? Wait, we don’t have a congress anymore only a pen and a phone.
obamacare is like a toll road. self governing and self sustaining oppression.
Obamacare in of itself is illegal.
Everything from it’s passage is illegal.
I guess Congress is populated with people who are ok with a lawless president.
I’m confused. Insurance companies aren’t charging enough so the government is going to force them to charge us more to pay for their losses?
The Federal Government is an entity that makes a mistake, and then repeats it over and over again until it becomes THE LAW OF THE LAND.
It’s in the law. The insurers are allowed to increase premiums to cover costs
Otherwise,they would not have agreed
*the above is my interpretation of an echo heard coming from the vicinity of San Francisco.