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HHS: Bailing out Obamacare insurers an 'obligation' of the federal government
Washtington Examiner ^ | 20 Nov 15 | Philip Klein

Posted on 11/21/2015 4:19:33 AM PST by SkyPilot

The Department of Health and Human Services attempted to reassure private insurers on Thursday that they'll be able to recover losses from participating in Obamacare by claiming it was an "obligation" of the U.S. government to bail them out.

At issue is a provision within the law known as the risk corridors program. Under the program, which runs from 2014 through 2016, the federal government is to collect money from health insurers doing better than expected and use those funds to provide a federal backstop to other insurers who incur larger than expected losses from rising medical claims. The idea was to provide training wheels to insurers in the first years of Obamacare's implementation, and to take away any incentive for insurers to cherry pick only the healthiest customers.

Republicans, fearing that this could turn into an open-ended government bailout in the event of industry-wide losses, included a provision in last year's spending bill that limited the program, requiring HHS to pay out only from the pool of money collected, rather than supplementing it with other sources of government funding. President Obama signed that bill.

Now that insurers have been able to look at medical claims, what they've found is that enrollees in Obamacare are disproportionately sicker, and losses are piling up. For the 2014 benefit year, insurers losing more than expected asked for $2.87 billion in government payments through the risk corridors program, but HHS only collected $362 million from insurers performing better than expected. Thus, the funds available to the federal government only amounts to 12.6 percent of what insurers argue that they're owed. So insurers are not happy.

(Excerpt) Read more at washingtonexaminer.com ...


TOPICS: Constitution/Conservatism; Extended News; Government; News/Current Events
KEYWORDS: bailout; healthcare; insurance; obamacare; unexpected
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To: DJ MacWoW

If it’s a picture of Michael Moore, it should say “FOOD...SHOULD BE FREE”


41 posted on 11/21/2015 5:44:35 AM PST by COBOL2Java (I'll vote for Jeb when Terri Schiavo endorses him.)
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To: SkyPilot
I remember watching live on C-SPAN back in 2010 (I believe) when Sen Baucus was clearly smashed out drunk on the Senate floor

That*s awesome. I don*t remember that. Yeah, it must have been tough to advocate Obamacare while sober.

42 posted on 11/21/2015 5:45:46 AM PST by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7H)
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To: theBuckwheat
One of the roots of our ailing economy at this very moment is the vast quantity of money that government is creating out of thin air.

True. And that has also led to our vastly overinflated markets. If they collapse bigtime, there will be blood on the walls.

43 posted on 11/21/2015 5:45:56 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: Rock N Jones
Send the bill to John Roberts

I remember reading Justice Scalia's words in his dissenting view this year:

http://www.breitbart.com/big-government/2015/06/25/scalia-blasts-obamacare-ruling-words-have-no-meaning/


44 posted on 11/21/2015 5:47:52 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: SkyPilot

Now that insurers have been able to look at medical claims, what they've found is that enrollees in Obamacare are disproportionately sicker, and losses are piling up.

They're shocked, shocked I tells ya!


45 posted on 11/21/2015 5:48:59 AM PST by COBOL2Java (I'll vote for Jeb when Terri Schiavo endorses him.)
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To: proxy_user

Let me run a fact by folks that some will not like. Americans are so fat now that many could not get an individual health insurance policy. Back in 78 I wrote health insurance for Mutual of Omaha. A younger female came by our office three months in a row trying to get a policy with even a 50% rate increase due to her weight. She was 5’3” and over 210 lbs. I showed her the underwriting guide that clearly stated she had to be under 202 lbs. to get coverage. Three times she failed. I can state that most nurses I saw in Vanderbilt’s ER would fail and not have insurance if they were not on group insurance.


46 posted on 11/21/2015 5:49:53 AM PST by Lumper20 ( clown in Chief has own Gov employees Gestapo)
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To: St_Thomas_Aquinas
We Should Start Calling This Law SCOTUScare, And 20 Other Epic Scalia Burns
47 posted on 11/21/2015 5:51:42 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: SkyPilot

He could not get a private policy either. Why is he on Gov Employees insurance? Why are senators and Congressmen? They are not Gov Employees.


48 posted on 11/21/2015 5:53:34 AM PST by Lumper20 ( clown in Chief has own Gov employees Gestapo)
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To: SkyPilot

——Wall Street made Billions on this whole scam.——

You have confused me with your statements. The thrust of the piece is that the health insurers over all did not fare well. In fact the reported loss is 2.508 billion. (2.87- .362) Those that did well predicting the risk had 362 million taken back.

It would seem that all the insurors either broke even or lost money.

That being so, who on Wall Street made billions? It doesn’t seem to be the insurors.


49 posted on 11/21/2015 5:56:40 AM PST by bert ((K.E.; N.P.; GOPc.;+12, 73, ....carson is the kinder gentler trumping.)
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To: SkyPilot

Looks like it’s just an end-run around limits on subsidies for the insured.


50 posted on 11/21/2015 5:57:25 AM PST by tacticalogic ("Oh bother!" said Pooh, as he chambered his last round.)
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To: SkyPilot

How willing are private companies willing to risk their own money on a promise of a bailout from obama down the road?


51 posted on 11/21/2015 5:57:34 AM PST by 4rcane
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To: Alberta's Child

"Under all the usual rules of interpretation, in short, the Government should lose this case. But normal rules of interpretation seem always to yield to the overriding principle of the present Court: The Affordable Care Act must be saved."

Justice Scalia, June 2015

52 posted on 11/21/2015 5:58:15 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: DH

Perhaps I was unclear. My suggestion for a compromise that would provide extra funding for Obamacare in the current budget is not to preserve it but to take the issue beyond the 2016 election. Otherwise, if there are health insurance cancellations due to a lack of extra funding, there will be a campaign issue and much whining about people who lose their health insurance coverage because of GOP stinginess. I would rather pocket gains now from killing off some Democratic programs, and leave to a new GOP President and Congress in 2017 a free hand to kill Obamacare and put a GOP substitute in place.


53 posted on 11/21/2015 6:03:07 AM PST by Rockingham
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To: Lumper20

I worked for Blue Cross and Blue Shield for 15 years, half of those as a claims examiner (the rest as a programmer for claims examiners), and you are correct. Individual policies have to be very selective since there is basically no risk pool (if I recall correctly). Group policies can spread the risks around, and thereby can allow higher risk applicants. Those obese nurses in the hospital would likely never have been able to get individual policies.


54 posted on 11/21/2015 6:04:09 AM PST by COBOL2Java (I'll vote for Jeb when Terri Schiavo endorses him.)
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To: bert
They did make Billions bert. Check them since 2009 as well, after ObamaCare passed.

Now that the well has run dry, and forecasts are dire, they are crying in their beer.

Thanks, Obamacare! Health insurer stocks soar - CNN Money Report

Also, if we had a real Justice Department, and real justice, I would wager you that the number of Congressmen, Senators, and high placed Executive branch officials who engaged in what was literally illegal "insider trading" of health care stocks would boggle the mind.

55 posted on 11/21/2015 6:05:06 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: proxy_user

“Of course, Congress could modify the law to fix the problem. I’m sure they’ll be happy to help Obama.”

Exactly correct and that is what will happen. Either that or Obama will re-write the law as usual, and the GOPe Congress will claim it’s helpless.


56 posted on 11/21/2015 6:05:30 AM PST by ReaganGeneration2
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To: COBOL2Java

At Moore’s size and level of health he needs free healthcare. ;-)


57 posted on 11/21/2015 6:25:32 AM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: SkyPilot

the federal government is to collect money from health insurers doing better than expected and use those funds to provide a federal backstop to other insurers who incur larger than expected losses from rising medical claims.

************************************************************************

If this is not the very essence of communism, what is?


58 posted on 11/21/2015 6:26:59 AM PST by Graybeard58 (Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
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To: randita

“I wish writers/reporters would replace the word “federal government” with “taxpayers”.

It’s as if the “federal government” has some kind of money tree and we have nothing to do with it.””


Profound statement.

.


59 posted on 11/21/2015 6:30:51 AM PST by Mears
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To: SkyPilot

Baucus drunk? Probably celebrating his cut of the Obamacare zillions.


60 posted on 11/21/2015 6:35:13 AM PST by Liz (SAFE PLACE? A liberal's mind. Nothing's there. Nothing can penetrate it.)
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