Obamacare | The Government's Takeover of Health Care
Obama Planning on Obamacare Bailout for Insurance Companies
Created on Tuesday, 03 June 2014 08:09
Written by Chuck Justice
This has been in the works since the very notion of Obamacare was conceived. The Obama regime has been planning to bail out the health insurance industry with taxpayer dollars because of the money the companies will lose due to Obamacare. This, of course, will make the federal government a large owner in many of these companies, making them one step closer to a full-blown government-run health care system. Bailing out the insurance companies keeps them in check as they lose billions of dollars because of Obamacare.
From The Los Angeles 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.
They continue to argue that most insurers shouldn't need to substantially increase premiums because safeguards in the healthcare law will protect them over the next several years.
But the change in regulations essentially provides insurers with another backup: If they keep rate increases modest over the next couple of years but lose money, the administration will tap federal funds as needed to cover shortfalls.
Although little noticed so far, the plan was already beginning to fuel a new round of attacks Tuesday from the healthcare law's critics.
"If conservatives want to stop the illegal Obamacare insurance bailout before it starts they must start planning now," wrote Conn Carroll, an editor of the right-leaning news site Townhall.com.
On Capitol Hill, Republicans on the Senate Budget Committee began circulating a memo on the issue and urging colleagues to fight what they are calling "another end-run around Congress."
Obama administration officials said the new regulations would not put taxpayers at risk. "We are confident this three-year program will not create a shortfall," Health and Human Services spokeswoman Erin Shields Britt said in a statement. "However, we want to be clear that in the highly unlikely event of a shortfall, HHS will use appropriations as available to fill it."
Whatever happens, just know that this has been the plan all along. Democrats have been aiming for a government-run, single-payer health care system from day one. The insurance company bailout would be used as a way to keep the companies from quiet from their public complaining because, after all, the Obama regime wouldn't want the public to learn how costly Obamacare truly is.
Chuck Justice is the editor-in-chief for Habledash.