The Health Insurer Bailout is Headed Your Way

Posted: Jan 14, 2014 12:01 AM

There are a few winners in Obamacare. Very few, but they do exist. If one has an extreme medical condition it is easier to get insurance now. (Sort of.) The health insurers, in partnership with the federal government are also winners. (At least in the short to medium term.) They now have access to a pool of taxpayer subsidized potential policy holders who were not part of the market before. The health insurance companies are now basically government contractors. Contracting work can pay well.

Another nice thing about being a government controlled company is that if anything goes wrong – and nearly everything has gone wrong with Obamacare – is that the feds can always compel the taxpayers of the United States to pay for your mistakes. Bone headed decisions are spread across all of taxpaying America. The executives still make their bonus (and continue to give generously to the politicians). The government can claim that it is saving the taxpayers from economic disaster. (Which makes the politicians look good in the eyes of those who don’t know better.) And the taxpayers have little option other than to shrug their shoulders and write the check.

This is the way of the middle class. Shut up and write the check. You may not have wanted this. You may have fought against it. The law may be a disaster and may have been forced through in the most partisan way possible. But guess what? Too bad for you. You Mr. and Mrs Middle Class are on the hook. And so are your kids. Suck it up.

(From The Weekly Standard)

Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.” How can this be? Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them. The other three-quarters will be borne by American taxpayers.

Click here for the article.

The article is reprinted by permission of Against Crony