Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/14/2014 (2 years 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 (2 years 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'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for April 2016
Universal:
Small Farmers: That small farmers may receive a just reward for their precious labor.
Evangelization: African Christians: That Christians in Africa may give witness to love and faith in Jesus Christ amid political-religious conflicts.



Comments


More Politics & Policy

'He deserves what he gets:' Latino youths violently protest Donald Trump in Orange County Watch

Image of Trump protestors broke out in a violent riot during his Orange County rally (Reuters).

By Kenya Sinclair (CALIFORNIA NETWORK)

Thousands attended Donald Trump's Orange County rally - then broke out in violent protest. LOS ANGELES, CA (Catholic Online) - The Trump rally in Costa Mesa's Orange County Amphitheater was overflowing with supporters. There were several supporters who couldn't fit ... continue reading


New White House rules leave religious groups open to government abuse Watch

Image of Religious groups question the government's new regulations (Shutterstock).

By Kevin J. Jones (CNA/EWTN News)

The Obama administration's new rule for faith-based partnerships has drawn various reactions: one observer warned they could cause problems for partnering religious groups, while another said the action also strengthens these groups' protections against government ... continue reading


EXCLUSIVE - America, King of Propaganda: U.S. government spends billions to spew LIES to the American people. And guess what you foolish Americans, Congress made it all perfectly legal without your vote Watch

Image of

By David Drudge (CALIFORNIA NETWORK)

Have we won the ground war in Afghanistan? According to the government reports and the media, we sure have. However, this is not what one whistleblower has said, warning as early as 2012 that the American people are being deceived by the government. LOS ANGELES, CA ... continue reading


Bill De Blasio's ongoing investigation scandal fails to stop him from new fundraising efforts Watch

Image of Mayor Bill de Blasio won't talk - but his staff will (Wikipedia).

By Kenya Sinclair (CALIFORNIA NETWORK)

New York Mayor Bill de Blasio's closest aides have been issued subpoenas to aid the investigation into his shady fundraising strategies. LOS ANGELES, CA (Catholic Online) - The scandal surrounding de Blasio's fundraising has made headlines since 2014, when a leaked ... continue reading


Trump delivers first foreign policy speech, and sounds like a president should! (FULL TEXT) Watch

Image of Donald Trump's first full foreign policy speech sounded relatively presidential, and while short of specifics, was still worth listening to.

By David Drudge (CALIFORNIA NETWORK)

Donald Trump delivered his first full speech on foreign policy and he sounded fairly presidential while doing so. Trump is not a politician by trade, but he may make an excellent president thanks to his extensive business acumen. Trump is on the path to the Republican ... continue reading


The olive branch and the barb: Clinton vs. Trump Watch

Image of Trump and Clinton came out on top (Shutterstock).

By Kenya Sinclair (CALIFORNIA NETWORK)

The race for the presidential nominee has been full of surprises as history-making events, claims of foul play, dirty dealings and controversial statements have cropped up in abundance. Candidates have, at times, been caught up in a tight race, but Tuesday's primary ... continue reading


Trump will be president! Real estate mogul outpacing Romney by whopping 25 percent Watch

Image of Mitt Romney was friendly with Trump when he needed a campaign donation.

By David Drudge (CALIFORNIA NETWORK)

Donald Trump is on track to win both the primary and the election, according to the numbers. He is on a better trajectory than Mitt Romney was in 2008. Meanwhile, Hillary Clinton, while winning her primary, is losing support. LOS ANGELES, CA (California Network) - ... continue reading


Desperate Cruz and Kasich agree to stop competing, will focus on Trump Watch

Image of Cruz and Kasich are teaming up to block Trump, but their chances of success are slim.

By David Drudge (CALIFORNIA NETWORK)

Ted Cruz and John Kasich have teamed up to block Donald Trump from winning the Republican nomination. The rivals have agreed to divide upcoming primary states, so they can efficiently spend resources attacking Trump instead of each other. LOS ANGELES, CA (California ... continue reading


Public Bathrooms: Private and safe facilities or free-for-alls? Watch

Image of Apparently, gender-confused children can use whichever restroom they want - without adult supervision to ensure the safety of either gender within the confines of a bathroom (David Bro/ZUMA).

By Thomas Heed (CALIFORNIA NETWORK)

Men with bad motives or who live dissolute lifestyles have always been potential sexual threats to women - and now women have been pushed further into their corners as "transgender rights" rise to prominence as the newest notion of the sexual revolution. These rights ... continue reading


'We are in a race against time:' 175 nations sign landmark climate accord Watch

Image of World powers finally agree to make a move to fight climate change (Shutterstock).

By Kenya Sinclair (CALIFORNIA NETWORK)

World leaders have finally realized the destruction they have been allowing the planet to endure - and the ensuing consequences. LOS ANGELES, CA (Catholic Online) - A shocking number of 175 global leaders gathered at the United Nations headquarters to sign the Paris ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Acts 16:11-15
11 Sailing from Troas we made a straight run for Samothrace; the next day ... Read More

Psalm, Psalms 149:1-2, 3-4, 5-6, 9
1 Alleluia! Sing a new song to Yahweh: his praise in the assembly of the ... Read More

Gospel, John 15:26--16:4
26 When the Paraclete comes, whom I shall send to you from the Father, ... Read More

Saint of the Day

Saint of the Day for May 2nd, 2016 Image

St. Athanasius
May 2: St. Athanasius, the great champion of the Faith ... Read More