Stanley Feld M.D.,FACP,MACE
It is almost impossible to follow the tricks President Obama and his administration use to ignore congress and avoid the law. Few media outlets even try to understand the tricks. No one cares.
The media simply republishes the press releases of the Obama administration. The information is usually out of context.
ObamaCare was sold to the public and congress with a bunch of lies:
1.You can keep your healthcare insurance plan if you like it.
- You can keep your doctor if you like your doctor.
- Anyone making less that $250,000 per year will not pay a dime more in taxes.
President Obama’s promises were then followed by a long string of lawless executive actions to keep an unworkable scheme (Obamacare) going despite the damage being done to employers, doctors, consumers and the economy.
- Statutory deadlines were routinely ignored.
- Government funds were shifted from one program to another ignoring the law.
- The employer and employee mandate built into the law was illegally delayed, repeatedly
- Individual mandates were illegally delayed.
- Free Obamacare healthcare plans were illegally granted to illegal immigrants.
- Granting waivers to special favored groups.
- And many more.
Now, it looks like President Obama is diverting public funds to bail out the health insurance-companies in defiance of the law passed by congress one year ago. President Obama signed it into law.
President Obama desperately needs healthcare insurance industry to participation in Obamacare in order to prevent its collapse. He somehow had to come up with the bailout money.
Not only is he in the process of destroying our healthcare system as well as our economy, he is destroying America’s most important asset, the rule of law.
The mainstream media ignores the facts. One reason could be because the Obama administration keeps confusing the facts presented to the media. Another reason is the media bias toward President Obama.
These are probably the facts;
Last fall UnitedHealth said they were considering dropping out of the Federal Health Exchanges in 2017. The company said they were losing money on Obamacare. Aethna followed shortly thereafter
“The latest jolt is the $475 million loss UnitedHealth Group booked on the insurance exchanges in 2015, which the largest U.S. mega-insurer by membership expects to rise this year to another $500 million.”
Only three months ago the company projected losses of $400 million to $425 million. Every other line of UnitedHealth’s business is thriving.
In my last blog I published the outrageous healthcare insurance company executive salaries. The insurance industry cannot be losing money.
The real reason for UnitedHealth’s threat to quit was because the Obama administration underpaid the healthcare insurance industry $2.8 billion dollars for its 2014 obligated reinsurance payment.
When the reinsurance programs were activated congress passed the “Rubio” addendum stating that CMS could not pay out to the insurance industry more than they took in from insurance premiums.
The Obama administration had promised the healthcare insurance industry the reinsurance money for health risk overruns for participating in Federal Health Exchange.
The reinsurance programs were activated in 2014 for 3 years in an attempt to stabilize the insurance market (i.e. guarantee the healthcare insurance industry would not lose any money).
After he realized he could not pay more than 12% of what was owed he promised the healthcare industry he would make good on his commitment and pay as soon as he found the money.
This headline appeared, out of the blue, late on Friday afternoon February 12 at the start of Valentine Day Weekend.
Some how President Obama found the money. The low enrollment in Obamacare resulted in high-risk patients with pre-existing illnesses. The few low risk young patients could not cover the cost overruns.
The shortfall was $2.8 billion for 2014. Somehow in the flurry of numbers thrown at the American public late that Friday afternoon it looked like the 2014 $2.8 billion shortfall was settled with the healthcare insurance industry for $1 billion by the government.
The 2015 reinsurance bill looks like it is $7.9 billion.
The reinsurance program was high in 2015 because the Obamacare health exchanges sold droves of healthcare insurance on the exchanges in 2015 to high risk people with preexisting illnesses.
So far the Obama administration has only found $5.5 billion of that $7.9 billion owed to the healthcare insurance industry.
“Just three California insurers—Anthem, Blue Shield of California and Kaiser Permanente—raked in more than $1 billion of reinsurance payments combined.”
Something is fishy about all of this, especially in the face of the Rubio amendment.
Are you letting President Obama pull another trick on the American people at tax-payers’ expense?
The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.
All Rights Reserved © 2006 – 2015 “Repairing The Healthcare System” Stanley Feld M.D.,FACP,MACE
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