Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/14/2014 (9 months ago)

Catholic Online (www.catholic.org)

Taxpayers will largely be picking up the tab for insurance company losses, he says

As the nation scrambles about trying to make sense of health care reform, i.e. "Obamacare," a prominent consultant to health insurance companies, Robert Laszewski says that even if the plan causes insurance rates to skyrocket, "insurers won't be losing a lot of sleep over it." He says that insurance companies won't be bearing the cost of most of their losses. This will be thrown on to the backs of taxpayers, he says. This is one of the aces up the sleeve of the Obama administration.

'Reinsurance Program that caps big claim costs for insurers (individual plans only),' consultant Robert Laszewski explains. 'In 2014, 80 percent of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example.'

"Reinsurance Program that caps big claim costs for insurers (individual plans only)," consultant Robert Laszewski explains. "In 2014, 80 percent of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example."

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

1/14/2014 (9 months ago)

Published in Politics & Policy

Keywords: Obamacare, taxpayers, private insurance, Robert Laszewski


LOS ANGELES, CA (Catholic Online) - This fact has been largely kept out of the spotlight by the White House. Obamacare is projected by the Congressional Budget Office to funnel $1.071 trillion over the next decade from American taxpayers, through Washington, to health insurance companies.

While it's unconscionable that the U.S. taxpayers will be bearing the brunt of this, this will occur unless Republicans take action. Obamacare contains a "Reinsurance Program that caps big claim costs for insurers (individual plans only)," Laszewski explains. "In 2014, 80 percent of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example."

Share a baptism blessing by going here.

Insurance purchased through Obamacare's government isn't full-fledged private insurance. It's a sort of private - public hybrid. Private insurance companies pay for costs below $45,000, then taxpayers picks up the tab that has remained secret until now. Mr. and Mrs. Taxpayer will be responsible for four-fifths of the next $200,000, plus worth of costs.

Using this method, Obamacare takes a major step toward the government monopoly over American medicine fervently wished for by the left.

"The reinsurance program has done and will continue to do what it was intended to do; help attract and keep more carriers in Obamacare than might have otherwise come," Laszewski writes.

Obamacare is being aided by having taxpayers subsidize big insurance companies' business expenses. Laszewski writes that Obamacare also contains a "Risk Corridor Program that limits overall losses for insurers." So insurers not only don't have to pay out all of their costs, passing on their losses to others.

Laszewski provides a couple of examples to help illustrate taxpayers' unwitting generosity toward these "participating health plans" (plans sold through Obamacare's government - run exchanges):

Laszewski provides this disheartening illustration. "[I]f the health plan has costs at 110 percent of the medical cost target [the costs that the insurer expects to accrue], it will be responsible for only 102.4 percent of the target (a 2.4 percent shortfall) - only about a quarter of its losses.

"If the health plan's medical costs come in at 120 percent of the expected claim cost target level, the health plan will only be responsible for 104.4 percent of the target (a 4.4 percent shortfall)-again only about a quarter of its losses."

Pope Francis calls for your 'prayer and action'...

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2014
Peace:
That the Lord may grant peace to those parts of the world most battered by war and violence.
World Mission Day: That World Mission Day may rekindle in every believer zeal for carrying the Gospel into all the world.



Comments


More Politics & Policy

Let the Battle begin. China wants to control the Internet. Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Elected secretary-general of the International Telecommunication Union, or ITU at a high-level meeting in South Korea this week, Zhao Houlin told reporters that while everyone supports the idea of freedom of speech, what constitutes censorship is open to ... continue reading


Obama's trusted senior advisor Valerie Jarrett revealed to be a key player in cover-up Watch

Image of Trusted senior advisor to the president, Valerie Jarrett, has been revealed to be a key player in the effort to cover up that Attorney General Eric Holder lied to Congress about the Fast and Furious scandal.

By Catholic Online (NEWS CONSORTIUM)

Trusted senior advisor to the president, Valerie Jarrett, has been revealed to be a key player in the effort to cover up that Attorney General Eric Holder lied to Congress about the Fast and Furious scandal. LOS ANGELES, CA (Catholic Online) - Recently obtained ... continue reading


Are Ebola patients being 'disappeared?' Several sources warn 'yes' Watch

Image of What is the truth about this deadly disease and its presence in our country?

By Catholic Online (NEWS CONSORTIUM)

A news report published yesterday on the sensational website, "Infowars" asks if patients with Ebola are being "disappeared" to prevent panic in the United States. The claim cannot be dismissed because there are several matching reports from across the country. LOS ... continue reading


So this is how they win? Democrats caught red handed in Illinois voter fraud! Watch

Image of President Obama casting his early vote in Illinois for the 2014 midterm.

By Catholic Online (NEWS CONSORTIUM)

The city well known for its leftist-leaning voter corruption is at it again, after a Republican candidate found that all his votes were being handed to Democrats. LOS ANGELES, CA (Catholic Online) - Jim Moynihan, a Republican state representative candidate, ... continue reading


Blank 'green Obamacards' - up to 34 MILLION - issued prior to promised amnesty Watch

Image of Obama's high numbers of illegal immigration

By Catholic Online (NEWS CONSORTIUM)

Thirty-four million blank work permits and "green cards," which authorizes illegal immigrants to live and work in the United States are currently in the works. In the meantime, the White House prepares to issue an executive order after the November 4 midterm ... continue reading


North Carolina's Tillis stumbles during televised debate Watch

Image of While Thom Tillis has a dominant lead among whites (50 percent to Kay Hagan's 37), he is getting trounced among black voters: just seven percent are in his camp, compared with 83 percent for Hagan.

By Catholic Online (NEWS CONSORTIUM)

Congressional candidate State Legislature Speaker Thom Tillis stumbled badly during a televised debate with his Democratic rival Senator Kay Hagen earlier this month. During the televised debate on October 7, Tillis appeared at a loss for words when it came to ... continue reading


Houston: First Amendment Does not apply to Christian ministers? Interview with Keith Fournier Watch

Image of As at the tower of Babel, the confusion spreads until no progress is possible.

By Catholic Online (NEWS CONSORTIUM)

Houston officials fired a shot across the bow of Christian ministers, pastors and priests who they think may be encouraging their congregations to oppose the city's controversial "bathroom bill." The request is chilling and violates the First Amendment, but it also ... continue reading


New York law strips 34,500 law-abiding citizens of their lawful right to bear arms with ZERO due process Watch

Image of A New York law could be too restrictive and features virtually no due process.

By Catholic Online (NEWS CONSORTIUM)

A New York law may be infringing on the rights of many Americans and undermining mental health efforts in that state. The law, known as the Safe Act, requires, as part of its implementation, for mental health professionals to report the names of any people who could be ... continue reading


Why build a school when you can buy a senator! North Carolina race tops $100 million

Image of America is no longer for sale, it has already been bought.

By Catholic Online (NEWS CONSORTIUM)

The nation's most expensive Senate race in history is topping $100 million as the entire nation looks to a critical election in North Carolina. The money poured into the race reveals that elections are coming down to money and outside influencers have substantial ... continue reading


167,000 convicted criminal immigrants walk free within the United States Watch

Image of Deportations from the interior of the United States declined 34 percent this year from last.

By Catholic Online (NEWS CONSORTIUM)

With both Islamic State and Ebola posing an imminent threat to the United States through people entering the country illegally, it's distressing to note just how lax the nation's deportation laws have become. According to Breitbart, there remain nearly 167,000 ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Exodus 22:20-26
20 'You will not molest or oppress aliens, for you ... Read More

Psalm, Psalms 18:2-3, 3-4, 47, 51
2 Yahweh is my rock and my fortress, my deliverer is ... Read More

Gospel, Matthew 22:34-40
34 But when the Pharisees heard that he had silenced ... Read More

Reading 2, First Thessalonians 1:5-10
5 because our gospel came to you not only in words, ... Read More

Saint of the Day

Saint of the Day for October 26th, 2014 Image

St. Bean
October 26: On December 16, there is named in the Roman Martyrology and in ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter