Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/14/2014 (11 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 (11 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 December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More Politics & Policy

Obama's right, he has issued fewer executive orders than his predecessors, BUT... Watch

Image of Obama signs a bill while on vacation.

By Catholic Online (NEWS CONSORTIUM)

What's in a name? President Obama has ruled more from his desk, without the consent of Congress, more than any other president, but liberals are right to point out that these are not "executive actions" and don't count against his tally compared to other presidents. ... continue reading


Federal judge warned: Don't interfere with Obama's plan for deportation amnesty Watch

Image of U.S. President Barack Obama speaks about immigration reforms during a visit to Casa Azafran in Nashville,

By Catholic Online (NEWS CONSORTIUM)

In unusually strong language, the Obama administration warned a federal judge to stay out of the debate over President Obama's deportation amnesty. "Federal courts sit to decide cases and controversies, not to resolve disagreements about policy or politics," ... continue reading


Rick Santorum Seems Poised to Launch a 2016 Presidential Campaign Watch

Image of Rick Santorum

By Keith A. Fournier

I don't think I've met a 'suit' yet. It's very much heart of America, average Americans who have found a place where they see someone who will stand up and fight for them. If the Republican Party has a future - and I sometimes question if it does - it's in middle ... continue reading


You should be outraged! While Obama distracted you with a government shutdown, look what Senate Democrats snuck into this bill! Watch

Image of The White House has just received unprecedented surveillance powers thanks to an amendment to the Intelligence Authorization Act for the 2015 fiscal year.

By Matt Waterson (NEWS CONSORTIUM)

Overshadowed by the potential government shutdown and funding vote in the House, another bill was passed this week by Congress, one with much more sinister, and flagrantly un-American, goals. LOS ANGELES, CA (Catholic Online) - Congress passed a bill that gives a ... continue reading


What are they covering up? White House attempts to delay CIA torture probe Watch

Image of Secretary of State John Kerry on Friday reportedly called Sen. Dianne Feinstein, D-Calif., chairwoman of the Senate Select Committee on Intelligence, to tell her that the report's release should be delayed.

By Troy Dredge, Catholic Online

A Senate report, years in the making, which accuses the Central Intelligence Agency, or CIA of using banned torture techniques while evading oversight may never be released, According to Bloomberg, there have been ongoing efforts by the White House efforts to ... continue reading


Landmark pregnancy discrimination case heard by Supreme Court Watch

Image of Depending on the high court's ruling, companies may be required to afford mothers-to-be the same

By Catholic Online (NEWS CONSORTIUM)

A landmark case involving the rights of expectant mothers in the workplace was heard by the Supreme Court this week. Depending on the high court's ruling, companies may be required to afford mothers-to-be the same "reasonable accommodation" as they would ... continue reading


17 states REBEL against Obama, join lawsuit over immigration scandal Watch

Image of 17 states have banded together to sue Obama over his illegal action to refuse to enforce immigration reform, hoping the courts will block his attempts at providing amnesty to 5 million illegal immigrants.

By Matt Waterson (NEWS CONSORTIUM)

Seventeen states have allied together in order to sue President Obama's administration, citing the president's disregard for constitutional limits to presidential power, and refused to fulfill his obligation to enforce U.S. laws when he attempted to dismiss ... continue reading


A distinct euphemism: Health care reform was 'political miscalculation,' Schumer says Watch

Image of When the Democratic Party focused in exclusion to all else, on health care, he added,

By Catholic Online (NEWS CONSORTIUM)

One apt euphemism - which is essentially a nice term very a not-at-all-nice term, is the phrase, "Economical with the truth," i.e. lying. Senator Charles Schumer of New York, in summarizing the massive loss by democrats in elections earlier this month, said ... continue reading


The man behind the mess of Obamacare wants you to encourage abortion! Watch

Image of John Gruber, the man behind Obamacare, is an ardent supporter of abortion.

By Catholic Online (NEWS CONSORTIUM)

The architect of the Affordable Care Act (ACA), John Gruber, has made a fool of President Obama and the Democrats in his administration once again. LOS ANGELES, CA (Catholic Online) - Gruber has been recorded numerous times admitting that the ACA was written and ... continue reading


Should Obama be able to use the IRS as a weapon to target conservative opponents? Watch

Image of President Obama has used the IRS as a weapon to target Tea Party and conservative opponents.

By Catholic Online (NEWS CONSORTIUM)

It should come as a surprise to no one that fraud and power abuse is rampant in President Obama's White House, and the new scandal fall on the heals of the old IRS tax scandals of the last few years. LOS ANGELES, CA (Catholic Online) - The Treasury Inspector ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

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

Saint of the Day

Saint of the Day for December 18th, 2014 Image

St. Rufus
December 18: Rufus and Zosimus were citizens of Antioch (or perhaps Philippi) ... 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