As many of my posts and many reports in the media attest, Obamacare is failing and failing miserably. UnitedHealth Group’s proposal to withdraw from Obamacare’s health insurance exchanges, the bankruptcy of half of Obamacare’s COOPs, the less than stellar sign ups of the uninsured, and the “roll-out from hell” are all symptoms of the Law’s ultimate demise.
The American taxpayer dodged a bullet when the so-called “risk corridors,” as a vehicle through which the Administration would expose taxpayers to unlimited liability for insurers’ losses in Obamacare, was prevented by Congress last December. But, just as a law prevented the American taxpayer’s exposure to this massive liability, another “law” can bring it back from the dead!
The exchanges and insurance companies that backed Obamacare when it was being “debated” (that is a euphemism for being rammed down the throats of unwilling Democrat Senators, or ensuring their “yes” vote through “bribery”) have lost a great deal of money. One of the reasons they backed the law was the “risk corridor” provision – if they lost money the hapless American taxpayer would recompense their losses. Sweet deal! But that rug was pulled out from under them.
[Source: Broad Coalition Calls For Congress Not To Hand Health Insurers’ Losses To Taxpayers, by John R. Graham]
But, they want it back! And they are lobbying like crazy to get it back. Congress must maintain the restrictions prohibiting the use of Obamacare’s “Risk Corridor” program. Now these insurers are demanding more in returns from the program than they were putting into it. On October 1, the Department of Health and Human Services (HHS) announced that they would only be able to pay out $362 million of the requested $2.9 billion that Obamacare-participating insurers had requested. Even with the provision that closed the “Risk Corridor” we are still doling out $362 million to insurers – but a far cry from the $2.9 billion requested.
The Risk Corridor program represents a microcosm of the law, and one of its most insidious provisions, as it attempts to hide the true costs of Obamacare from beneficiaries, and instead spread it out among hardworking taxpayers. The Administration is looking for any and all avenues to try to mask and hide those failures, both for political reasons of public perception and for practical reasons of trying to help a doomed program limp along. Insurance companies are lobbying both Congress and the Administration to release the restriction placed on the Risk Corridor program.
My friends, the immortals words of Ronald Reagan are ringing in my ears, “The nearest thing to eternal life we will ever see on this earth is a government program.” Obama is watching his “signature piece of legislation” dying before his eyes. Do you really think he is going to allow that to happen?