Whether you call it a bribe, as Howard Portnoy did earlier this week, or a bailout, as Investors Business Daily did in a survey, Americans are opposed to a White House scheme to get insurers to help them clean up their mess through infusions of your cash.
From a summary by IBD’s John Merline:
The survey found that 65% oppose a federal bailout of insurance companies that find their profits hit because not enough young, healthy people sign up for ObamaCare plans.
Opposition is widespread, the poll of 907 adults found, with 51% of Democrats, 71% of Republicans and 76% of independents against it. It's opposed by every age and demographic group as well.
Although few people knew about it until recently, the health law contains a three-year ‘risk corridor program’ designed to bail out insurers if costs were higher than anticipated from too few young people enrolled.
The administration planned on 2.7 million young enrolling in the first year. Early data show that relatively few are doing so. And a Harvard University survey found less than a third of young uninsured say they plan to buy an ObamaCare exchange plan.
But the chances of an industry bailout sharply increased after President Obama said he'd make it possible for individuals to keep their current plans another year, a proposal he made after millions got cancellation notices.
The article goes on to note that an Obamacare bailout could reach half a billion dollars in the first year, according to some observers.
In a letter to state insurance commissioners, Gary Cohen, Director of the Center for Consumer Information and Insurance Oversight, an arm of HHS, wrote that "the risk corridor program should help ameliorate unanticipated changes in premium revenue." The translation is that any costs incurred by insurers who enact Obama's "fix" will be covered by taxpayers.
On Monday, HHS proposed changes that would open the bailout spigot even more. Among other things, it proposes to loosen the rules to be eligible for any ‘risk corridor’ money. It also wants to lower the threshold before a company can get federal ‘reinsurance’ payments. Previously, a company would have to spend at least $60,000 on an individual before the government would kick in. They want to drop that to $45,000.
- Obama offers bribe to insurers to reinstate canceled plans (using your money)
- Obama’s illegal, deceptive ‘fix’ to Obamacare won’t restore canceled insurance policies for most
- Official administration response to accusations Obama’s ‘fix’ is illegal
- Gaming Obamacare: A loophole that will result in massive fraud and overload the system
- New evidence of rampant Obamaphone fraud
- The move to defund ‘Obamaphones’
- Want a free phone? ‘Obamaphones’ are a cinch to get
- If you wait till you’re sick to sign up for Obamacare, you may pay through the nose
- WH adviser warned 3 years ago that Obamacare was headed for disaster
- About that Obamacare penalty: The government has no way of enforcing it
- Obamacare sticker shock gives way to anger
- Sticker shock from Obamacare rates as big a snafu as sign-up glitches
- Sticker shock: Californians suddenly discover why Republicans are shouting about Obamacare
- HealthCare.gov, other scam sites and Kaiser-now-non-Permanente?
- Obama lied, millions of insurance plans died
- Obama’s $5-a-year cell phone tax to fund high-speed internet in schools
- 41% of ‘Obama phone’ recipients can’t prove eligibility