Wednesday, July 30, 2014

(Not so) Reassuring Re-insurance

One of the (many) problems with the ObamaTax that's been flying under the radar is the soon-to-be cancelled re-insurance program:

"Insurance companies will no longer have access to ACA’s “re-insurance” and “risk corridor” programs. The first item currently allows insurers to bill the government for the most expensive patients."

Basically, this re-insurance is a way to funnel taxpayer money directly from DC into insurance carriers' coffers, and was designed to bribe the industry into supporting the ObamaTax protect carriers from the inevitable adverse selection they were afraid of under the Guaranteed Issue provision of the law. It's available for a limited time only (well, at least until HHS Secretary Burntwell unilaterally extends it).

And just how much of your money are we talking about here?


"Aetna Inc. believes it should qualify for $50 million in federal reinsurance benefits, based on actual individual health insurance claims submitted during the first half of the year."

And why is that?

Think of it this way: when you can't be turned down for health insurance - no matter how sick you are - any premium is a bargain compared to the cost of medical care. Add in ObamaTax subsidies, which further reduces your costs, and it's no wonder that a lot of seriously ill folks are signing up (or trying to, anyway).

Aetna, of course, sees the writing on the wall (and in their ledgers) and has its hand out to Uncle Sugar for some of that sweet, sweet reinsurance cash. And why not? They've earned it, right?

But of course, they're not the only carrier with its hand out:

"Big Government and Big Insurance have worked together to promote Obamacare.  They’ve also worked together to make sure taxpayers will help bail out insurance companies who lose money selling insurance under Obamacare."

And remember, Aetna's not even the biggest boy on the block; what happens when Blue Cross or UHC take their place in line? That's the price we pay for carriers' agreeing to shill for the ObamaTax after initially resisting it.

Quid pro quo: It's what's for dinner.
blog comments powered by Disqus