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View Full Version : Obama admin caught in another big lie; Insurance Company bailout is real



leafs43
05-22-2014, 09:20 AM
http://www.latimes.com/nation/la-na-insurance-bailout-20140521-story.html#page=1



e Obama administration has quietly adjusted key provisions of its signature healthcare law to potentially make billions of additional taxpayer dollars available to the insurance industry if companies providing coverage through the Affordable Care Act lose money.

The move was buried in hundreds of pages of new regulations issued late last week. It comes as part of an intensive administration effort to hold down premium increases for next year, a top priority for the White House as the rates will be announced ahead of this fall's congressional elections.

Administration officials for months have denied charges by opponents that they plan a "bailout" for insurance companies providing coverage under the healthcare law.

They continue to argue that most insurers shouldn't need to substantially increase premiums because safeguards in the healthcare law will protect them over the next several years.

If conservatives want to stop the illegal Obamacare insurance bailout before it starts they must start planning now.
- Conn Carroll, an editor of the right-leaning news site Townhall.com
But the change in regulations essentially provides insurers with another backup: If they keep rate increases modest over the next couple of years but lose money, the administration will tap federal funds as needed to cover shortfalls.

Although little noticed so far, the plan was already beginning to fuel a new round of attacks Tuesday from the healthcare law's critics.

"If conservatives want to stop the illegal Obamacare insurance bailout before it starts they must start planning now," wrote Conn Carroll, an editor of the right-leaning news site Townhall.com.

On Capitol Hill, Republicans on the Senate Budget Committee began circulating a memo on the issue and urging colleagues to fight what they are calling "another end-run around Congress."

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Obama administration officials said the new regulations would not put taxpayers at risk. "We are confident this three-year program will not create a shortfall," Health and Human Services spokeswoman Erin Shields Britt said in a statement. "However, we want to be clear that in the highly unlikely event of a shortfall, HHS will use appropriations as available to fill it."

The stakes are high for President Obama and the healthcare law.

Although more than 8 million people signed up for health coverage under the law, exceeding expectations, insurance companies in several states have been eyeing significant rate increases for next year amid concerns that their new customers are older and sicker than anticipated.

Insurers around the country have started to file proposed 2015 premiums, just as the midterm campaigns are heating up. Obamacare, as the law is often called, remains a top campaign issue, and big premium increases in states with tightly contested races could prove politically disastrous for Democrats.

If rates go up dramatically, consumers may also turn away from insurance marketplaces in some states, leading to their collapse.

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Proposed increases in a few states where insurers have already filed 2015 rates have been relatively low, with several major carriers seeking just single-digit hikes. But insurers in closely watched states, such as Florida, Pennsylvania, North Carolina and Arkansas, are still preparing their filings.

"It's absolutely paramount to keep premiums in check," said Len Nichols, a health economist at George Mason University who has advised officials working on the law.

The state-based marketplaces, which opened last year, allow consumers who do not get health coverage at work to shop among plans that meet basic standards. Sick consumers cannot be turned away, and low- and moderate-income Americans qualify for government subsidies to offset their premiums.

cComments
@Beast_SPQR...as I've told you previously, experiences like the one you refer to even if true are neither probative nor a good basis for making public policy. Likely alleged experiences like you assert can be matched or exceeded by articles like "Steve Duin: We won't know how good Obamacare is,...
LJP-305
AT 9:08 AM MAY 22, 2014
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To stabilize this new system, the law set up a complex system of funds, including one known as the Temporary Risk Corridors Program, that collect money from insurers and transfer it from companies with healthier, less expensive consumers to those with sicker, more costly consumers.

This system was supposed to pay for itself, as does a similar one used to shift money between drug plans in the Medicare Part D program.

But insurance industry officials have grown increasingly anxious about the new system's adequacy.

Pressure is most acute on insurers in states where healthy consumers were allowed to remain in old plans that are not sold on the new online marketplaces, an option Obama offered to states amid a political firestorm over plan cancellations last year. The president had promised people would be able to stick with their plans.

The renewal temporarily solved a political problem for the White House, but created a new one. Maintaining these old plans kept many healthy consumers out of the marketplaces, making the pool of new customers less healthy and therefore potentially more expensive for insurers, according to experts.

Premium hikes will likely be modest in much of the country. But probably not everywhere.
- Larry Levitt, an insurance expert at the nonprofit Kaiser Family Foundation
In a series of White House meetings over the last several months, Obama and other senior administration officials have sought to persuade insurance company CEOs to nonetheless hold rates in check, arguing that the marketplaces would stabilize over time.

But with proposed 2015 rates beginning to come in, the administration acceded to industry demands for a clear guarantee that more money would be available to cover potential losses.

"In the unlikely event of a shortfall for the 2015 program year, HHS recognizes that the Affordable Care Act requires the secretary to make full payments to issuers," the regulation published Friday notes. "In that event, HHS will use other sources of funding for the risk corridor payments, subject to the availability of appropriations."


That language allows the administration to tap funds appropriated for other health programs to supplement payments to insurers, according to administration and industry officials.

Among congressional Republicans, the decision has raised concerns. "If the program costs more than it brings in, the secretary would be able to divert money intended for other programs," Republicans on the Senate Budget Committee warned.

Whether the new regulations will be sufficient to control rates remains unclear.

America's Health Insurance Plans, the industry's Washington-based lobbying arm, welcomed the administration's move, saying in a statement that the regulations "provide important clarity about how these insurer-financed programs will work as health plans prepare their rates for 2015."

In a note to investors this week, J.P. Morgan also noted that the new rules "should improve stability of the exchange market."

But some insurers continue to warn of bigger increases. Larry Levitt, an insurance expert at the nonprofit Kaiser Family Foundation, cautioned that some consumers may still be in for sticker shock.

"Premium hikes will likely be modest in much of the country," he said. "But probably not everywhere."



Back in January libs called it a myth.

Tekkendo
05-22-2014, 09:23 AM
What a shocker. Obamacare was written by the insurance lobbyists hired be the Democrats.

http://www.theguardian.com/commentisfree/2012/dec/05/obamacare-fowler-lobbyist-industry1

Streetbull
05-22-2014, 09:24 AM
Price controls are next, followed by the death panels Sarah Palin warned us about.

CCFD2466
05-22-2014, 09:25 AM
Can't stand Obama or his yes men. Sick of being called racist or an outdated republican fanatic for saying that.

metroins
05-22-2014, 09:28 AM
This article is pretty accurate; the risk sharing corridors have always been a part of the law.

How did liberals call it a myth?


Can't stand Obama or his yes men. Sick of being called racist or an outdated republican fanatic for saying that.

What does that have to do with this topic? Seems more fit for a blog or a diary; maybe a facebook post.

leafs43
05-22-2014, 09:33 AM
This article is pretty accurate.

How did liberals call it a myth?


http://www.politico.com/story/2013/11/health-care-insurers-meeting-barack-obama-100028.html

http://www.realclearpolicy.com/2014/01/14/the_039insurance_company_bailout039_myth_16920.htm l

http://publichealthwatch.wordpress.com/2014/01/14/debunking-the-latest-obamacare-myth-the-insurance-company-bailout/

http://thinkprogress.org/health/2014/01/13/3155631/debunking-obamacare-myth-insurance-company-bailout/



lol

Streetbull
05-22-2014, 09:45 AM
As an aside, we should to never hire Dem lawyers for any government post, especially POTUS.
Are any Dem lawyers since Kennedy not scumbags?

FawkinJuicy
05-22-2014, 09:55 AM
Another day, another lie from the regime. Not surprising at all. The regime has been illegally re-writing the law after-the-fact for years now, and nobody has done a damn thing about it. Nothing will happen about this either.

CCFD2466
05-22-2014, 10:09 AM
This article is pretty accurate; the risk sharing corridors have always been a part of the law.

How did liberals call it a myth?



What does that have to do with this topic? Seems more fit for a blog or a diary; maybe a facebook post.

Valid point brah. My apologies. I should have been more transparent. I can not stand nor like the way he operates. I am aware that probably all presidents in recent decades slip certain things into 100+ page documents. And I know , well, believe that 99.993727% of politicians are crooked corrupt bastards. But I really disagree with almost everything he does. Sorry to be so jaded and vague in my comment earlier man.

metroins
05-22-2014, 10:21 AM
http://www.politico.com/story/2013/11/health-care-insurers-meeting-barack-obama-100028.html

http://www.realclearpolicy.com/2014/01/14/the_039insurance_company_bailout039_myth_16920.htm l

http://publichealthwatch.wordpress.com/2014/01/14/debunking-the-latest-obamacare-myth-the-insurance-company-bailout/

http://thinkprogress.org/health/2014/01/13/3155631/debunking-obamacare-myth-insurance-company-bailout/

lol

The rule change is allowing HHS to move funds around the reinsurance program; not from taxpayer dollars.

http://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/508-CMS-9949-F-OFR-Version-5-16-14.pdf

The rules are beginning page 68 and ending 82. Summary on page 346 to 347.

No bailout yet boss.



Changes to the Allocation of Reinsurance Contributions
Modifies our allocation of reinsurance collections if those collections fall short of our estimates for a particular benefit year: we will allocate the reinsurance collections for that benefit year first to the reinsurance payment pool, and second to administrative expenses and the U.S. Treasury.




This rule revises the allocation of reinsurance contributions collected for the 2014 and
2015 benefit years so that if reinsurance collections fall short of our estimates, reinsurance CMS-9949-F 347
collections are allocated first to the reinsurance pool, and second to administrative expenses and
the U.S. Treasury on a pro rata basis.


We expect that this policy will not have a significant effect
on transfers, because we estimate that we will collect the full amount of reinsurance
contributions to fully fund the reinsurance payment pool. This policy may lower premiums by
reducing the uncertainty associated with reinsurance payments to individual market plans
eligible for reinsurance payments. The Affordable Care Act creates a temporary risk corridors
program for the years 2014, 2015, and 2016 that applies to QHPs, as defined in 153.50

Here are two decent resources to read up on the reinsurance program if you want:
http://www.cms.gov/cciio/resources/files/downloads/3rs-final-rule.pdf
http://kff.org/health-reform/issue-brief/explaining-health-care-reform-risk-adjustment-reinsurance-and-risk-corridors/

Essentially payments made to treasury ($2 billion) and administrative costs were supposed to be pro-rated with the fund; meaning the fund would receive $10 dollars and treasury would receive $2 out of every $12 dollars collected.

Now the fund receives all $12 dollars until it reaches $10 billion, then pays admin costs, then pays Treasury.

No extra tax dollars are on the hook by this change.

metroins
05-22-2014, 11:09 AM
Valid point brah. My apologies. I should have been more transparent. I can not stand nor like the way he operates. I am aware that probably all presidents in recent decades slip certain things into 100+ page documents. And I know , well, believe that 99.993727% of politicians are crooked corrupt bastards. But I really disagree with almost everything he does. Sorry to be so jaded and vague in my comment earlier man.

What does that have to do with the topic of reinsurance in PPACA?

Your rambling is not vague; it's just not relevant.

jbball92
05-22-2014, 11:12 AM
in related news

http://finance.yahoo.com/news/obama-white-house-buck-stops-100000619.html

RIKTER
05-22-2014, 01:50 PM
What does that have to do with the topic of reinsurance in PPACA?.

Oh lawdy..first time I heard the word reinsurance in place of bailout...unless I misunderstood???
Control the language...control the debate.

metroins
05-22-2014, 02:07 PM
Oh lawdy..first time I heard the word reinsurance in place of bailout...unless I misunderstood???
Control the language...control the debate.

The reinsurance is funded by the insurers not tax dollars.

I posted two links above for you to educate yourself.

Flakker
05-22-2014, 02:11 PM
Oh lawdy..first time I heard the word reinsurance in place of bailout...unless I misunderstood???
Control the language...control the debate.

Reinsurance does apply here as it's acting fully as a treaty program.

Of course that doesn't change the fact that it's another federal intrusion into insurance (historically State governed), it's a wealth transfer from healthy people to sick people (read, young to old), and it's an obvious gateway to single payer.

Of course, there will always be a private health insurance market, even with single payer, but this law will "allow" (force) such programs to be "reinsured" (taxed) so that the bourgeoisie can continue to prop up the proles. Joy.

Flakker
05-22-2014, 02:12 PM
The reinsurance is funded by the insurers not tax dollars.

I posted two links above for you to educate yourself.

Come on now, where do you think they're getting that money from?

It's just another damn tax.

metroins
05-22-2014, 02:29 PM
Come on now, where do you think they're getting that money from?

It's just another damn tax.

It is not a tax, it is not income to the government, it is a risk sharing program. If an insurer experiences losses it is reimbursed by insurers who made profits. It is a temporary program until 2016.

Read the documents I listed above to learn more about it.

Flakker
05-22-2014, 02:47 PM
It is not a tax, it is not income to the government, it is a risk sharing program. If an insurer experiences losses it is reimbursed by insurers who made profits. It is a temporary program until 2016.

Read the documents I listed above to learn more about it.

Yes, it is. It's a pool Re program funded by insureds - conicidentally, every single citizen in the U.S.

WTF are you talking about, "income to the government??"

Citizen(premium surcharge) - insurer (program fee) - this program - insurer (claim) - citizen (cheaper/stable rates)

Just because you're washing it through a company, then sticking it into a pool doesn't change the fact that Uncle Sam is taking money from John Q1 to give to John Q2. Oh, and charging and inexplicably high admin fee to boot.

Brb social secruity isn't a tax

brb money for food stamps aren't taxes

lazi
05-22-2014, 02:52 PM
Funny how the problems with the VA are starting to come out. That's how government runs healthcare.

Fuark we need a Milton Friedman type who can just demolish the bloated government.