U.S. Rep. Jack Kingston (R-Ga) talked to FOX News' Eric Shawn this Sunday on "America's NEWS Headquarters" about a plan by the Obama Administration to financially prop up health care insurance companies faced with higher costs due to the implementation of the Affordable Care Act (ACA or Obamacare).
President Barack Obama allocated billions of dollars in his 2015 budget proposal for insurance companies that lose money under Obamacare.
The plan called the Patient Protection and Affordable Care Act requires insurance companies that record at least a 3-percent profit from Obamacare to direct some of that profit into a government-controlled fund. In turn, insurers who record at least a 3-percent loss would be able to access those funds.
"This latest scheme is designed to really redistribute profits and losses," said Kingston. "So if you obtain insurance through one of the state-run plans and your insurance company has too many losses they will assess another insurance company that has had too much profit and move the money around. So it is absolutely a bailout, it is absolutely more government interference, and it is absolutely a socialistic approach to the marketplace."
The Obama Administration decided on the new approach after millions of insured Americans received cancellation notices from their insurance companies. The plans that were cancelled were less expensive than the Obamacare plans because they didn't cover as many services.
The President spent several years convincing his voters that they will be able to keep their insurance policy if they like it under his signature law. Therefore, after he was accused of misleading the public, Obama adjusted the law to allow those affected by the changes to keep their insurance policy for another year. That, however, put some of the insurance companies at risk of losing money.
"The reality is there are still more people who are uninsured today than there were when Obama was elected president," said Kingston. "So this is absolutely been a disaster because it's driven up the costs, it's driven up the premiums, it's driven up the deductibles, it's limited your choice of doctors, plans, access to health care. And now we're hearing from the same government that gave us this horrible roll out back in October that 'don't worry we now have a new scheme in this game will be to make sure no one is making two met too much money and no one is losing too much money.'
"I don't believe this government is smart enough to administer this. What they're trying to do is interfere with the marketplace and as you know the capitalist system is a lot better determiner of what the prices should be, (…) the strong survive and the weak are weeded out, and that's the way the marketplace should work. What they're going to be doing is propping up the week insurance companies who have not run a good shop."
Kingston, who represents Georgia's first congressional district, is running for U.S. Senate to replace retiring Republican Saxby Chambliss. The congressman faces six Republican challengers, but he is considered to be one of the frontrunners.