Just when you though it couldn’t get any worse we discover just this week Obamacare will be bailing out insurance companies and providing healthcare at your local CVS store. This is on top of the millions of lost policies, the higher cost, the higher deductibles, the lack of Doctors, increases in part time workers, and the poorly working $350 million dollar website.
The first in what will prove to be a long line for Obama bailouts is Humana. Humana is a for-profit managed healthcare organization based in Kentucky. They are one of the evil insurance companies Obama claimed were trying to derail his healthcare efforts by claiming it would drive up premiums. (NYT) Now he is writing a check to them for somewhere from $250 to $450 million partially to cover less than stellar enrolments in Obamacare. The rest is to cover (surprise surprise) those that did manage to sign up actually needed healthcare and coverage.
The money for this bailout isn’t coming from any stimulus but from new taxes on your health plan, if you still get one from work. You can see how much your plan is valued by the government by looking at box 12 of your W2 form (IRS) Humana is hoping to make up the rest in government subsidized plans bringing in more than they must pay in claims. (Bailout)
CVS Caremark Company made the news this week for deciding to stop selling something it makes 2 billion a year from, tobacco products. (Note: 2% of gross revenue) Investors with CVS reacted by selling off shares in a rate 3 times what the Dow is down. (-.05% VS -1.66%) Obama within minutes of the announcement read his own prepared speech praising their decision. Which begs the question why would they stop selling a profitable product and why coordinate the announcement with the White House?
The answer can be found in Obamacare. Business wise CVS has no choice but to continue to throw its lot in with Obama. It should come as no surprise that the bulk of their business is in prescriptions. With Express Scripts and Catamaran competing for the same business they can’t afford to take the chance that a stroke of the pen or phone call could end any relationship with Obamacare. The other reason will only take a minute to explain. It is CVS’s in store clinics called MinuteClinics, a business model to fill the niche of the Obamacare doctor shortage. So now when you run to CVS for hair dye or razors you can stop by isle 13 and have that STD checked out. They haven’t yet proposed drive thru abortions but the venture is still young. (CVS)
Like the saying “in for a penny in for a pound” once CVS decided to back Obamacare they went all out. They require their employees to have a Wellness review of their lifestyle outside of work. The review is voluntary, but the extra $600.00 per year for the company health plan is not if you decline. (Wellness ) You can find Obamacare help on their web site or health care navigators in their stores.
It is just too bad that no one read the original bill especially all the Democrats that voted to pass it. It seems daily there is another hit to the middle class and some unexpected result of the Affordable Care Act. Now that it has been passed we can quote Nancy Pelosi again and just “embrace the suck”. (Suck)