On Friday Coloradans learned that we’d be looking at a huge rate increase for individual insurance next year and, of course, the Colorado insurance commissioner blames Trump administration for uncertainty, 27% rate hike requests.
Well, let’s see.
Colorado Insurance Commissioner Marguerite Salazar said “It remains pivotal that the Trump administration stops using people’s access to health care as a bargaining chip and commits to funding the Cost-Sharing Reductions in 2018.”
What the hell is a “Cost-Sharing Reduction”? As much as I thought I knew about Obamacare, this was new to me.
I certainly knew of the “Risk Corridor” which was a slush fund that allowed insurers to bill the government for losses incurred by insuring the uninsurable (i.e., Pre-existing conditions). I suspect that many insurance companies thought this government teat would be there forever since Obamacare was just ‘too big to fail.’ However, in 2013 Marco Rubio introduced a bill which eliminated the Risk Corridors and was certainly a huge contributor to insurers leaving exchanges and the first couple rounds of gigantic premium increases.
But we all sucked it up because we had no choice and purchased plans with astronomically high deductibles. This has resulted, or so ‘they’ say, in the individual insurance market “stabilizing.” Makes me want to puke.
Back to the Cost-Sharing Reduction. This part of Obamacare mandates insurers offer plans with reduced deductibles and copays to low income people (e.g.,100-250% of the poverty level). The insurer gets to bill the government for these ‘losses.’ It’s interesting that this is being portrayed as if this money isn’t funded, the insurance companies will lose money. NO THEY WON’T! The ones who remain in the market will simply charge those of us buying individual insurance, including me and Ann Coulter, the added expense of giving more welfare money to low income individuals as well as paying for the chronically ill.
The Founders are rolling over in their graves!
Let’s sum up, the poor either haven’t purchased or aren’t interested in purchasing individual insurance because of the uncertainty in the insurance market. Wait, huh? Even though it’s bloody cheap (because we’re all paying for it to be cheap), they’ve decided not to buy it so they’re not disappointed if they lose it. Wait, huh? And so revenue is down so prices need to go up?
I don’t think so! They’re not buying insurance because it’s not worth it for them to spend the money at any price unless the government forces them to. And since this was never tenable in the first place and since people demonstrated that they’d rather pay a fine if it “saved” them money, FORCING THE POOR TO BUY INSURANCE IS NEVER GOING TO WORK! My GAWD you’d think an evil Republican came up with this plan rather than simply “the federal government knows what’s best and it’s for your own good” Democrats!
The bottom line here is that Obamacare will not “work” without a continued influx of money to the insurance companies from the federal government. Ann and I are simply not rich enough to pay for the medical care of those with chronic conditions as well as for the poor who won’t buy insurance unless it’s free. (That would be the definition of an oxymoron my friends.)
Will it be President Trump’s fault if Obamacare fails completely? I CERTAINLY HOPE SO!