It was already pretty dim for anyone who understands how insurance works. I used to be an insurance underwriter (property and casualty, not health) and I’ve been wondering since the beginning how anyone thought Obamacare was going to work. The risk size versus the pool of insureds doesn’t make sense. If insurance companies can’t adjust for risk (which for the most part they can’t under Obamacare) what bizarro mathematics is going to save this ill-conceived juggernaut of bureaucratic bull?
Government price setting and payment is an invitation to corruption.
Healthcare rates are going up for many people in 2015, and the White House is afraid that people will be unhappy about this. So unhappy that Democrats might be punished at the polls. But if health insurers keep their rates artificially low through the elections new rules unveiled recently by the administration will make sure the giant insurance companies won’t lose any money.
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.
But despite appearances, they aren’t not throwing fellow crony conspirators (aka health insurance companies) under the bus.
Apparently deep within the bowels of Obamacare is a provision which says that if an insurer who participates in the Obamacare exchanges loses over 3% more than they thought they would they can recoup 50% of that loss from the taxpayer. If the companies lose 8% they can recoup 80% of that loss.
As I read this article my brow just became more furrowed. So now bribes are cool according to Kathleen Sebelius?
No–the government seems determined to stop it.
Basically if one had an individual plan one was likely going to lose one’s coverage. If one was lucky enough to have a large group plan through a company then one was likely to see things remain the same. (Don’t want to upset the employees of corporate donors.)
It’s the small business owners, artists, consultants, etc. who get hammered, which is typical in a crony capitalist system.
Now everybody has to buy their product. One way or another. If someone doesn’t they are fined by the IRS. That is a pretty sweet deal for the insurance companies.
But we are told how Obamacare is a “progressive reform.” How finally everyone can get healthcare. How the President “stood up” to the insurance companies and pharmaceutical companies.
Nonsense. Barrack Obama is the largest enabler of the big 5 health insurance companies there has ever been, by a long shot.