Blue Cross Blue Shield says if “Republicans” stop the bailouts (taxpayer subsidies) for ObamaCare insurers, it will lead to Single Payer (translation: Medicaid for everyone, but maybe not Congress), which is exactly why so many of us scoffed at the idea that ObamaCare should be left alone to “collapsing” on itself. That’s why full repeal was and is the only way out. The bailout happens through ObamaCare’s Reinsurer Program and the “Risk Corridor.” Insurers are guaranteed, from within passed law that not a single Republican voted for, that their losses will never be above 2 percent. If you seriously believe that insurance companies will be fine with any percentage of loss, what are you smoking? What color is your pill? Do you refuse to measure your shot of Jim Beam or do you just dump it in? Whatever you are doing, STOP IT AND PAY ATTENTION.
Here’s a good explanation:
If a new ObamaCare plan comes in under budget, the insurer pays the difference between the actual cost and projected cost to HHS. If it comes in over budget, HHS pays the difference to the insurance. It’s a way for insurers to spread risk among the industry with HHS as middleman.
Problem is, there’s no cap on how much HHS might need to pay out if lots and lots of plans come in over budget — a plausible scenario given the whispers from Humana about what it’s seeing among the demographic mix of ObamaCare enrollees so far. If too many plans have lopsided numbers of sick enrollees who need expensive treatments and few healthy ones to supply the revenue needed to offset that expense, HHS could be on the hook for the shortfall via a de facto bailout — unlessCongress repeals the risk corridor provisions, in which case the insurers will be stuck with the bill.
How many of them will be able to cover it and how many will go belly up? Of the ones who stay in business, how many will have to charge exorbitant premiums next year to make up for their losses? And if premiums soar, some portion of their consumers are bound to cancel their plans, which means even less revenue for the insurers and the need for even higher premiums, etc. That’s the “death spiral,” and in theory that’s where single-payer comes in. If the insurance industry melts down because Congress cut its financial lifeline, what replaces it? Source: Hot Air
Source: Fraser Institute
“Advocates of single-payer health care systems tend to promote the allegedly lower monetary costs, but they ignore the lack of access to medical resources,” said Brett Skinner, Fraser Institute Director of Health, Pharmaceutical and Insurance Policy Research and lead author of the peer-reviewed study: “The Hidden Costs of Single Payer Health Insurance: A Comparison of the United States and Canada.”The study shows that health care in Canada appears to cost less relative to the United States because Canadian public health insurance does not cover many advanced medical treatments and technologies, common medical resources are in short supply, and access to health care is often severely delayed. Via Carpe Diem along with the graphic above
Here’s common sense:
We were told ObamaCare is the “Affordable Care Act” but it has never had a mechanism to be financially healthy, and financial health was never a part of the law. Can’t you see Sebelius huddling with insurance company CEOs to make government and insurers fat and happy?
We are three-fourths of the way to fully-government-controlled health care. You won’t like it. Find my article from earlier today here, which includes legislation introduced to stop the bailouts.
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