Obama's Secret Insurance Bailout

[Cozarkian]

What do you do if you are worried your new health care law might cause premiums to rise, negatively impacting your parties chances in the upcoming election? Simple, you promise to use taxpayer money to protect insurance companies in exchange for not raising premiums.

What do you do if you are worried voters might respond negatively to this use of their taxes? Simple, you bury it in a long list of regulations and hope nobody finds out.

In the words of the LA Times:

The Obama administration has quietly adjusted key provisions of its signature healthcare law to potentially make billions of additional taxpayer dollars available to the insurance industry if companies providing coverage through the Affordable Care Act lose money.

The move was buried in hundreds of pages of new regulations issued late last week. It comes as part of an intensive administration effort to hold down premium increases for next year, a top priority for the White House as the rates will be announced ahead of this fall's congressional elections.

Administration officials for months have denied charges by opponents that they plan a "bailout" for insurance companies providing coverage under the healthcare law.

Also see - http://www.forbes.com/sites/theapot...-house-is-bribing-health-insurance-companies/

 

[glenn1]

So let's see what happens when progressive ideals collide, and the unstoppable force of corporate subsidies meets the immovable object of Obamacare.

 

[michal1980]

lol. So Obama manages to create faux single payer health insurance.

 

[senseamp]

So it's an indirect subsidy. I don't see a problem with it. Seems like opponents are grasping for straws now that their dire predictions have been largely proven false.

 

[ElFenix]

So let's see what happens when progressive ideals collide, and the unstoppable force of corporate subsidies meets the immovable object of Obamacare.

progressives didn't want obamacare.

 

[master_shake_]

ya insurance companies need more money... like a fat person needs moar cheezburgers.

 

[glenn1]

progressives didn't want obamacare.

Great, then let's join forces to repeal it and put in place something better. And that sure as shit ain't either single payer or "public option."

 

[ivwshane]

Great, then let's join forces to repeal it and put in place something better. And that sure as shit ain't either single payer or "public option."

Great! Let me know when you or whoever comes up with something better!



Oh you don't want to wait?! Why? Because you really, really, believe those that want to appeal the ACA will come up with something better?

I just got an inside scoop on a bridge that's going for cheap! Pm me

 

[sactoking]

"Obama's Secret Insurance Bailout"? Really?

It's not a secret. It's never been a secret. It's always been known that the risk corridors program may not be budget neutral. The reinsurance program was always budget negative, the risk adjustment program was always budget neutral, and the risk corridors program was budget risk. In fact, the risk corridors program was initially projected by CBO to be budget positive, meaning the fed would make money on it. The changes to the CBO projections are tied to the "transitional policies" that CCIIO is using, whereby non-compliant plans can be renewed through 2016.

Avik Roy has a history of distorting facts and this is another example.

 

[alcoholbob]

Insurance companies think they are getting a deal now, just wait after a few decades of inflation, its going to go the other way and suddenly they cant even make ends meet under this system.

 

[squarecut1]

Great, then let's join forces to repeal it and put in place something better. And that sure as shit ain't either single payer or "public option."

That is what would eventually happen, but probably not in our lifetimes.

 

[werepossum]

"Obama's Secret Insurance Bailout"? Really?

It's not a secret. It's never been a secret. It's always been known that the risk corridors program may not be budget neutral. The reinsurance program was always budget negative, the risk adjustment program was always budget neutral, and the risk corridors program was budget risk. In fact, the risk corridors program was initially projected by CBO to be budget positive, meaning the fed would make money on it. The changes to the CBO projections are tied to the "transitional policies" that CCIIO is using, whereby non-compliant plans can be renewed through 2016.

Avik Roy has a history of distorting facts and this is another example.

I think his point is that the regulatory language was inserted promising to use "other funding" (i.e. tax revenue) to make up any shortfall when in fact the White House is not allowed to spend money that Congress has not appropriated. This isn't a problem if the risk corridors are revenue neutral, but it's potentially a problem if they are not as money has been promised.

I'm personally not convinced this is an issue as it's essentially a politician's promise to scratch their backs if they have his for the 2014 elections. If the risk corridors are a loss as everyone now suspects (and as most of us suspected all along) and Obama cannot get the money appropriated, they can simply insert new language denying extra funding, or possibly just take more from Medicare. It's all about the bureaucracy. Government giveth and government taketh away, blessed be the name of government.

 

[werepossum]

Great, then let's join forces to repeal it and put in place something better. And that sure as shit ain't either single payer or "public option."

Why don't we replace it one state at a time? That way, if it turns out to be no better or even worse, the other 49 don't go through the same mess as with Obamacare for no benefit.

Pick a red state refusing to expand Medicaid and institute the new system. Hopefully it works and other states can adapt it or adopt it whole, but even if it turns out that there really is a "one size fits all" states plan, there's no guarantee that we'll hit it first try.

 

[ElFenix]

Great, then let's join forces to repeal it and put in place something better. And that sure as shit ain't either single payer or "public option."

do you have a problem with public option if there's a wall between it and the treasury?

 

[werepossum]

do you have a problem with public option if there's a wall between it and the treasury?

Surely you aren't asking us to imagine that proggies could get single payer and not use tax money to support it. I mean, flying purple unicorns with laser ray eyes is one thing, but this is simply too far out.

 

[ElFenix]

Surely you aren't asking us to imagine that proggies could get single payer and not use tax money to support it. I mean, flying purple unicorns with laser ray eyes is one thing, but this is simply too far out.

i didn't say single payer. i said public option.

 

[werepossum]

i didn't say single payer. i said public option.

Ah. Then you could support it with tax money and just call that raiding the piggy bank.

 

[ElFenix]

Ah. Then you could support it with tax money and just call that raiding the piggy bank.

if you're not interested in answering the question then you should probably just not respond rather than trolling.

 

[Newell Steamer]

Wait - no one screams about corporate welfare,.. why is this suddenly an issue?

Oh, yeah,.. Obama. Right. Carry on.

 

[Hacp]

Wait - no one screams about corporate welfare,.. why is this suddenly an issue?

Oh, yeah,.. Obama. Right. Carry on.

Corporate "welfare" is usually returning money the corporations have earned in the open and free market. The corporations earned that money, we are just returning it.

This case is different. We are directly subsidizing these insurance companies by giving them business. This is called picking and choosing winners. It is favoritism, not capitalism.

 

[werepossum]

if you're not interested in answering the question then you should probably just not respond rather than trolling.

Ahem.

i didn't say single payer. i said public option.

Wasn't a question, dude, just a silly and transparent evasion. The public option IS single payer, period.

 

[cytg111]

Alot of hating towards the president that the rest of the world, well its allies at least, regard to as the second coming of christ for you guys.
The man speaks much sense, the man has his hands much tied (wtf congress?).
It is what it is.

 

[Jhhnn]

"Obama's Secret Insurance Bailout"? Really?

It's not a secret. It's never been a secret. It's always been known that the risk corridors program may not be budget neutral. The reinsurance program was always budget negative, the risk adjustment program was always budget neutral, and the risk corridors program was budget risk. In fact, the risk corridors program was initially projected by CBO to be budget positive, meaning the fed would make money on it. The changes to the CBO projections are tied to the "transitional policies" that CCIIO is using, whereby non-compliant plans can be renewed through 2016.

Avik Roy has a history of distorting facts and this is another example.

Avik Roy- professional hatchet man. He tells 'em what they want to hear, every time.

 

[BoberFett]

Wasn't a question, dude, just a silly and transparent evasion. The public option IS single payer, period.

No, in single payer there is no option. Everyone uses a single payer: the government.

A public option is just that, an option run by the public (government). It would be similar to a non-profit health organization, but those who believe that government can do things better than private enterprise, for profit or not, could choose that option.

Of course the VA is a technically a quasi-public option, and we see how well that's being run by the same government that we're supposed to entrust with caring for everyone.

 

[werepossum]

No, in single payer there is no option. Everyone uses a single payer: the government.

A public option is just that, an option run by the public (government). It would be similar to a non-profit health organization, but those who believe that government can do things better than private enterprise, for profit or not, could choose that option.

Of course the VA is a technically a quasi-public option, and we see how well that's being run by the same government that we're supposed to entrust with caring for everyone.

I'd say rather that the public option is a single payer option within the full system, just as the VA. But either way, the public option is a very short walk to collapse of the private health insurance business, as the federal government now also has total control over its competitors and can simply mandate a very low payout for its program knowing the balance must be made up from its competitors. We're seeing the same thing in Medicare/Medicaid where the reimbursement is usually below the cost of providing the service.