The Greatest Socialist Baby, ObamaCare, needs a bailout diaper change because it’s overwhelming success in creating “better” and “more” Health Care for everyone has got some ‘wastage’ (aka poop) 🙂
When Obamacare was rammed through Congress without a single Republican vote way back in 2010, conservatives warned that the massive government program would ultimately require bailing out health insurance companies that gladly signed on.
Fast forward five years and it’s that time. Today on Capitol Hill, lawmakers are being pressured by the White House to provide money, or a bailout, to insurance companies losing money due to running government Obamacare exchanges. From The Hill:
— Phil Kerpen (@kerpen) December 9, 2015
Republicans and Democrats are close to agreeing on delaying two major taxes, the “Cadillac tax” on high-benefit plans and the medical device tax.
But those proposals have run into opposition from the White House, which wants language fixing ObamaCare’s so-called risk corridors — a program intended to help insurance companies that take a financial hit by participating in government-run health exchanges.
That program is nearly out of money because of a policy rider sponsored by Sen. Marco Rubio (R-Fla.) on a year-end spending bill in 2014 that bars the Department of Health and Human Services from tapping into other accounts to fund it.
Rubio’s role has injected presidential politics into the debate, making it all but impossible for GOP leaders to agree to the White House’s demands.
The talks appeared to hit a wall Monday when Republicans ruled out fixing the risk corridors, which they panned as a “bailout for insurance companies.”
“This is not on the table. Risk corridors is fully off the table,” said a Senate Republican leadership aide.
Despite the disagreement, Republicans are feeling optimistic they can get the healthcare pieces worked out.
Repealing the Cadillac tax, which hits the health plans of union members especially hard, is a priority of Reid’s and many Democrats.
But that was the “soak the rich” component of ObamaCare because only “rich”, well to do, greedy, people had those plans they said.They kneww they were lying but they didn’t care. The Agenda Uber Alles. It was a funding mechanism they used to sell the CBO (and thus con everyone else) on the BS that is ObamaCare.
My Blog Nearly 6 years ago (January 8th, 2010):
Those who think they’ll be exempt from the tax because their health care insurance isn’t one that Obama would define as a “super, gold-plated Cadillac” plan are kidding themselves. Douglas Holtz-Eakin, director of the Congressional Budget Office under George W. Bush, says 95% of Americans who are covered by plans that fit into the Cadillac category make less than $250,000 a year.
Even groups on the left get it. As Jim Kessler, vice president for policy for the progressive Third Way think tank, puts it: “A lot of those folks that have Cadillac plans have Chevy wages.”
Also don’t believe the claim that the tax will be on the insurance companies only. Sure, insurers will write the checks to Washington. But they’ll forward their costs to the customers, adding to a tax burden that’s already too punitive — and going to get worse.
“Passing the tax on to workers would result in an effective tax rate that is even higher than the specified 40%,” Curtis S. Dubay wrote in October in a Heritage Foundation WebMemo. “When the insurance companies embed the cost of the excise tax in premiums, the prices of plans will rise. A higher price means the excise tax would be higher, too.”
This would happen when the tax on a $10,000 individual plan adds $600 (40% of the $1,500 beyond the $8,500 threshold) to the cost, leaving a new premium of $10,600. The new cost will then be subject to the tax, boosting the premium another $840 (40% of the $2,100 over the $8,500 threshold). By now, that $10,000 plan is costing $11,440 a year.
“This cascading effect,” explains Dubay, “could raise the effective rate for the excise tax to 67% according to one estimate — considerably higher than the 40% specified in the bill.”
The problems don’t stop there. The growing premiums will drive many private employers that provide coverage for their workers to downgrade to cheaper insurance plans, which defeats the effort to improve health care.
A Liberal Democrat “soak the rich” scheme that blows up in their face and does the exact opposite. Nah, that never happened before…
See Alternative Minimum Tax 🙂
The good news is, it looks like the Obamacare Cadillac tax will be repealed and insurance companies will have to take the hit they signed up for when they agreed to Obamacare years ago.
I’ll leave you with this, which explains why Democrats and Republicans are on board with repealing the Cadillac Tax.
Want to know how the ACA/Cadillac Tax wipes out your company plan? Just listen to these 3 short radio segments: http://t.co/WEbtQ47Cxs
— Rich Weinstein (@phillyrich1) September 14, 2015
They knew this 6 years ago, but THE AGENDA IS THE AGENDA, after all. 🙂
Most Americans don’t know what their insurance plans are worth. They’re happy to let their employers pay the premiums for them and believe that the money isn’t coming out of their pockets.
Very Very true.
I heard a woman say, “Well, I just got out of the hospital. It cost $150,000. And I paid nothing. It was wonderful”
She was complaining about a $42 State Mandated charge in her car insurance. Because “I’m poor you know”. “I’m on a fixed income” (aka I relied on Social Security to pay for my glorious retirement).
And now 6 years later with the economy in the crapper because of Liberals they do it EVEN MORE now than they use.
People may not know the value of ANY insurance, but politicians know the value of politics. 🙂
“These are plans,” says the St. Pete newspaper, “that generally have very low co-pays and lots of extras.”
Sound familiar? Then either be prepared to pay more, or be stuck with a brass-plated, Yugo plan that’s more affordable. And while learning to settle for less, don’t forget: This grand reform effort coming out of Washington is supposed to improve our health care.(IBD and my Blog- January 2010).
It’s Bailout time, and you get stuck with Government “improved” Health Care and The Check.
Congrats. It’s a Whopper (from your own Burger KING). 🙂