The Health Insurer Bailout is Headed Your Way

All the big health care insurance stocks are up big over the last year. (And continue to be.) What does that tell you? Source: Yahoo Finance

All the big health care insurance stocks are up big over the last year. (And continue to be.) What does that tell you? Source: Yahoo Finance

There are a few winners in Obamacare. Very few, but they do exist. If one has an extreme medical condition it is easier to get insurance now. (Sort of.) The health insurers, in partnership with the federal government are also winners.  (At least in the short to medium term.) They now have access to a pool of taxpayer subsidized potential policy holders who were not part of the market before. The health insurance companies are now basically government contractors. Contracting work can pay well.

Another nice thing about being a government controlled company is that if anything goes wrong – and nearly everything has gone wrong with Obamacare – is that the feds can always compel the taxpayers of the United States to pay for your mistakes. Bone headed decisions are spread across all of taxpaying America. The executives still make their bonus (and continue to give generously to the politicians).  The government can claim that it is saving the taxpayers from economic disaster. (Which makes the politicians look good in the eyes of those who don’t know better.)  And the taxpayers have little option other than to shrug their shoulders and write the check.

This is the way of the middle class. Shut up and write the check. You may not have wanted this. You may have fought against it. The law may be a disaster and may have been forced through in the most partisan way possible. But guess what? Too bad for you. You Mr. and Mrs Middle Class are on the hook. And so are your kids. Suck it up.

(From The Weekly Standard)

Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.”  How can this be?  Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them.  The other three-quarters will be borne by American taxpayers.

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75 comments
David Kesinger
David Kesinger

And Leslie when you get cut off by the govt for treatment don't call me I will call you! If you like the DMV you will love govt run health care. And if you knew anything about Reagan you would know what he thought about govt run medicine.

David Kesinger
David Kesinger

Hey Brian I am not forcing you to buy squat that would be your Marxist government so watch who your calling a dumb ass. I am thinking you must be a Obama voter.

Brian Bracken
Brian Bracken

Forcing me to buy a product from a privately owned for profit corporation is not socialism or marxism it's facist capitalism , dumbass...

David Kesinger
David Kesinger

By the way Kip free market has not been free in health care for eons. insurance companies can't even sell their product across state lines. Quit preaching the obama marxist lines will ya. next thing you know you will be telling me health care is expensive due to class warfare!

David Kesinger
David Kesinger

Kip Govt won't solve your problems they just compound them. If we had less govt interference in health care the prices would go down due to competition. You remember your payments will go down up to2500 per family if the govt runs it. I have some nice property to sell you Kip cheap!

Ginger Smith
Ginger Smith

Who is going to bail out the American people who are having to buy an insurance plan they can afford and pay for someone else's that can't are won't buy their own.

Sally Gardner
Sally Gardner

Oh my gosh.Not another one. where does it end?

Kip Martin
Kip Martin

It's not Marxist to want an insurance solution that prioritizes coverage. You fail to accept the conflict of interest you have when attempting to get a claim fulfilled. You might find out you might as well have put your money in a bad slot machine.

Kip Martin
Kip Martin

Your single point argument would require that one insurance would step in when another one fails. Since all private insurer's mode of entrepreneurship is maximizing premiums collected, while minimizing claims paid, there never is this parallel redundancy you are implying. Show me just one example of one company taking over to fulfill a claim when the other fails.

Michael Benghazi Wilson
Michael Benghazi Wilson

During the 3 1/2 years of World War II that started with the Japanese bombing of Pearl Harbor on December 7, 1941 and ended with the Surrender of Germany and Japan in 1945, the US produced 22 aircraft carriers, 8 battleships, 48 cruisers, 349 destroyers, 420 destroyer escorts, 203 submarines, 34 million tons of merchant ships, 100,000 fighter aircraft, 98,000 bombers, 24,000 transport aircraft, 58,000 training aircraft, 93,000 tanks, 257,000 artillery pieces, 105,000 mortars, 3,000,000 machine guns, and 2,500,000 military trucks. We put 16.1 million men in uniform in the various armed services, invaded Africa, invaded Sicily and Italy, won the battle for the Atlantic, planned and executed D-Day, marched across the Pacific and Europe, developed the atomic bomb and ultimately conquered Japan and Germany. It's worth noting, that during the almost exact amount of time, the Obama administration couldn't build a functioning web site. States like Maryland copied what obama's crony administration did. Proof that these Politicians have lost all touch with reality. Obamacare and all of these State Exchanges for Obamacare need to be scrapped. It was built on lies. obama and Democrats in Congress Lied about Obamacare from Day 1 and now we are all suffering because of it. The takers are taking the whole country down with them. Remember that Obamacare was passed entirely by Democrats who exempted themselves from it.

Joseph A. Cummins
Joseph A. Cummins

The free market did no such thing. It's gov't regulations that has always raised the cost of insurance.

Richard Simpson
Richard Simpson

Wouldn't the situation that provides that potential benefit also include the potential risk of a single point of failure/corruption?

Terry Torsky
Terry Torsky

Oh, sorry! :( I think single payer is a good "idea", but I don't like the fact that the government would be involved. Also the thing I wouldn't like about it is that I would be forced to flip the bill for people who don't take care of themselves. I myself fall along the lines of Sean Hannity where you put money into your own plan and take out of it as needed... if you don't put into the plan like you're supposed to, then get hurt, well then that's your own fault.

Richard Simpson
Richard Simpson

Thanks Terry, but I was asking the question there for another reason.

Jake Ilardi
Jake Ilardi

Another bailout shouldn't be an option!!!

Aidan Haggerty
Aidan Haggerty

Many business are going to place their workers onto the exchanges because it's cheaper for them to do so. Of course, the quality will be like the DMV on a massive scale, with the compassion of the IRS.

Harold Greenhalgh
Harold Greenhalgh

But insurance companies are doing such a good job.....of making money and little else.

Kip Martin
Kip Martin

Single risk pool provides the most cost effective coverage for the participants. It reduces the risks because everyone pays into the same fund. There aren't multiple companies sucking the maximum profit out of it possible.

Richard Simpson
Richard Simpson

What benefit would single-payer add? What risks would it add?

Richard Simpson
Richard Simpson

Target fixation is when you focus so hard on the tree you don't want to crash into, that you crash into the tree. Govt facilitates a LOT of that kind of stuff.

Terry Torsky
Terry Torsky

Richard Simpson... Didn't see this one coming, NOT! What's really sad is that the damn government caused it!

Mike Shotts
Mike Shotts

wonder how much goes back to Washington for the scheme

Marie Straub
Marie Straub

1. I doubt that insurance companies will go out of business. 2. If they do go out if business, we should have Medicare for all!

Brian Simonis
Brian Simonis

I think if/when this were to occur it would open the doors widely for a single-payer system.

Kip Martin
Kip Martin

Show me it is anything other than a business model of maximizing dis-service and I might believe you can stop drinking the free market fleece kool-aid

Tom Manley
Tom Manley

I agree with Rod Allen, this Kip person is drinking the kool-aid!

Matt Haag
Matt Haag

And some clowns honestly thought THIS would lead to a single payer system? That's just sad.

Mike Lemen
Mike Lemen

What's funny about this site is everybody bitches about any ideas...you want to cry and whine about every price of news you see.. What's the solution? Hell the government isn't even in this century with any solutions...Congress and the senate have all the power to change anything...but choose to sit on Thier hands because they want to keep getting elected...

Tom Chenault
Tom Chenault

Three years after Medicare passed in 1965, health care prices doubled. They wiped out the free marketplace and price competition. Who cares if one aspirin casts $25 if a 3rd party is paying for it.

Against Crony Capitalism
Against Crony Capitalism

Single payer is not an option. We can't afford the programs we have now. The welfare state has likely seen its high water mark with Obamacare in this country. Time for market based, modern, 21st century solutions. We have no choice anyway.

Kip Martin
Kip Martin

Free Market has allowed the prices to keep increasing for many years. All insurance benefits from a larger risk pool. There is no reason to support a profit fleecing from a dis-service business model.

Benjamin Stockton
Benjamin Stockton

Louis, we could just raise taxes on the 1% to fund single-payer. Problem solved.

Benjamin Stockton
Benjamin Stockton

Yep, and out come the free-marketeers to defend the fat cats. Gotta keep the skim to Wall Street going. Enrich the wealthy, screw the poor.

Louis C Carl
Louis C Carl

Single payer missionaries, I will support you when you get honest and admit that single payer transfers the burden of paying for health care from employers (the "1%") to the taxpaying public at large. Don't believe me, take an extended vacation in Canada, fill up your tank, buy a case of Molson's, go to a restaurant.

Louis C Carl
Louis C Carl

You are aware that this passed without a single Republican vote, of course you are you just got overheated.

Louis C Carl
Louis C Carl

Single payer missionaries, I will support you when you get honest and admit that single payer transfers the burden of paying for health care from employers (the "1%") to the taxpaying public at large. Don't believe me, take an extended vacation in Canada, fill up your tank, buy a case of Molson's, go to a restaurant.

Paul Peterson Sr.
Paul Peterson Sr.

There isn't a single benefit to health care from single payor, "no choice," medical care.

Cynthia Wooten
Cynthia Wooten

Free market direct self-pay is the only thing that will drive down the price of health care. Get rid of the middle man.

Kip Martin
Kip Martin

Hey look.. It's general... Ralph Zodd :)

Mike Lemen
Mike Lemen

Single payer by 2017.....the affordable healthcare act will be repealed...

Kip Martin
Kip Martin

Un-American.. that is complete kool-aid talk. Go pay a toll for every road you drive on.