Buried deep within Obamacare’s 2,801 pages, are provisions for a massive taxpayer-funded bailout of insurance companies.
Specifically, Section 1341 creates a fund to cover more than $20 billion of losses insurance providers will suffer for covering people with specific high risk health problems, as required by Obamacare. This is a fee collected from insurers and employers with the price tag of $63 per person. Functionally this is a tax, and the additional costs of any business are passed onto employees or consumers.
And Section 1342, in a brazen display of Obama-era crony capitalism, creates a so-called “risk corridor” which requires taxpayers to cover up to 80 percent of losses incurred by insurance companies during the first three years of Obamacare. Apparently, a requirement that all Americans must buy their product is not sufficient.
The same insurers who helped write this monstrous, job-killing legislation, and are also regularly demonized by President Obama, are now waiting anxiously for their estimated $47 billion bailout. When Minority Leader Nancy Pelosi (D-CA) famously told us we would have to wait until the law was passed to find out what was in it, she really wasn’t kidding.
Beyond the hundreds of billions of dollars wasted on broken exchange websites, the real problem with the insurance mandate is that the young, healthy people required to make large insurance pools work are not joining. With the deadline for signing up set at March 31, 2014, the Federal government’s sign-up goal for “young invincibles” is only at 27 percent, and even that number is up for debate. Instead, Obamacare has enrolled those who are already in poor health while exploding the already unsustainable Medicaid rolls. These expensive variables were not considered when the non-partisan Congressional Budget Office mistakenly reported risk corridors would be budget neutral.
Insurance companies are in the risk business. But in this case, not only did every company in the industry fail to calculate just how bad new enrollments would be; they were unable to project just how dangerous it was for them to tie their business model to the whims of a lawless President.
Therefore, Citizens United, with our 500,000 grassroots members, is proud to support the efforts of Rep. Tim Griffin (R-AR) and Senator Marco Rubio (R-FL) who have both introduced accompanying bills to stop Health and Human Service’s blank check to fund this outrageous insurance company bailout. So far, Rep. Griffin’s H.R. 3541 has 61 co-sponsors in the House and Senator Rubio’s has 13 in the Senate.
As Sen. Rubio eloquently stated in The Wall Street Journal last year, “Americans are sick and tired of Washington politicians picking winners and losers – and nowhere is this practice more grotesquely evident than taxpayer-funded bailouts, which assault the economic values of our free enterprise system in favor of those who are politically connected and whose lobbyists know the right people to call and levers to pull.”
Obamacare embodies all that is wrong with Washington. No government agency should have the authority to conduct a massive wealth transfer from taxpayers to private insurance companies to cover their losses from a law they helped pass.
The Rubio-Griffin legislation is an important step in fixing one of the major problems with the Obamacare law. Insurance companies worked with the Obama Administration to saddle America with Obamacare and they, not taxpayers, should feel the full extent of losses caused by their own bad business decisions.