Bailing out insurance companies
No wonder many insurance company executives supported President Barack Obama’s virtual takeover of the U.S. health insurance system. And no wonder that, despite ample evidence Obamacare is a crashing failure, so few are talking about refusing to participate.
Obamacare’s rotten foundation rests on persuading millions of younger Americans to sign up for government-approved health insurance, paying more to subsidize benefits for their older neighbors.
But many of the younger generation see through the smoke and mirrors of the Obamacare propaganda machine, and are deciding not to sign up. Even the stiff penalty tax to be charged to those who stay out of the program has not persuaded them.
Because of that, insurance companies may not be able to collect enough money in premiums to cover the cost of claims.
Never fear, however. Built into the Obamacare law are massive subsidies for the insurance companies. One is expected to provide $20 billion during the next three years, to cover insurance company losses. The cost of that will be added to health insurance premiums.
Another Obamacare safety valve calls for taxpayers to cover as much as 80 percent of insurance companies’ losses.
Americans should not be bailing out insurance companies whose fat cat executives have been, in effect, bribed through Obamacare. Congress should rescind the subsidies, and let the chips fall where they may.