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VodkaPundit

Backdoor Bailout

November 27th, 2013 - 9:22 am

EM

I guess that’s what you’d call the latest White House move to encourage the insurance companies to become wards of the state:

The U.S. government has issued a proposal that would likely increase risk payments in 2014 to health insurers offering plans on the Obamacare exchanges after the companies complained a recent policy change allowing people to keep their insurance policies had changed the financial equation.

The rule, published on Monday in the Federal Register, lowered the threshold at which risk payments kick in for the sickest health plan members. The government proposed paying insurers 80 percent of claims greater than $45,000 in 2014. Previously the lower limit was $60,000.

Subsidies for everyone! Except you, comrade — you’re still able to work, da?

But then there’s this:

In addition, the government has proposed a state-specific adjustment for risk payments based on how many people in the state extend their current polices, Citibank analyst Carl McDonald explained in a research note.

The exchanges are being created as part of President Barack Obama’s healthcare reform law. An estimated 7 million people are expected to sign up.

Ahem. Seven million people. Sounds like a lot, doesn’t it? Especially when you consider Enroll Maven can’t locate even 200,000 who have managed to sign up, with the enrollment period nearly one-third complete. But when you consider that the rational behind ObamaCare was to provide — right now! — health insurance for 47 million needy Americans, then those seven millions don’t seem like very much.

I want you to remember, please never forget, just a few things:

• The new normal of low growth and high un- and under-employment

• The overt politicization of everything

• The tax hikes

• The doctors driven from their fields

• The small private practices consolidated into government-friendly giant institutions

• The millions who have lost their coverage

• The tens of millions more who will lose their coverage

• The normalization of permanent part-time employment

• And all the lies, brazenly told, to make it all happen and to steal an election

All for the sake of getting a couple hundred thousand people signed up on a website.

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All Comments   (2)
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I am okay with the insurance companies getting this surety. They knew the government was going to rework the marketplace, and they knew they were, thus, heading into uncharted waters. There was no good way of assessing risk, and so, no way of knowing how much to charge for policies. With the failed rollout, with only the sickly willing to keep trying to sign up, they are looking at huge losses. Huge!

Now, the government wants to change the deal again. You can keep your old policy. So now, the insurance companies have to figure out what to charge, and make some kind of sales projections at a much higher cost for the same policies.

They are running up against the P's & Q's bell curve. The more they charge, the less they sell, and the more they have to charge, and the less they sell. It is an insoluble problem. I think a lot of insurance companies will be going bust, this year, or just dropping out of the game. Pray that it will not be your insurance company which fails. Without this surety, your insurance company would already have pulled out of the market.

2014 is going to be an ugly year.
38 weeks ago
38 weeks ago Link To Comment

"...and to steal an election"

There's not really much doubt left about that, is there? I wonder how many people currently believe that, and how many it takes to make Obama impeachment-bait.

38 weeks ago
38 weeks ago Link To Comment
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