Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/14/2014 (3 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."

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

1/14/2014 (3 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 April 2014
Ecology and Justice:
That governments may foster the protection of creation and the just distribution of natural resources.
Hope for the Sick: That the Risen Lord may fill with hope the hearts of those who are being tested by pain and sickness.



Comments


More Politics & Policy

Congress appalled at Obama administration's 'stunning disregard for law' Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Appalled by the Obama administration's attempt to "rewrite the Affordable Care Act on a wholesale basis," some members of Congress are calling the White House on the carpet for their "stunning disregard for the law." LOS ANGELES, CA (Catholic Online) - The ... continue reading


Study finds the American Republic has turned to Oligarchy Watch

Image of The Republic is dead, thanks to money and corruption.

By Catholic Online (NEWS CONSORTIUM)

A new study finds that the Republic is dead and that the United States government has become an oligarchy, even if its preliminary findings stop just short of declaring so. The study reveals that average American citizens have lost their political voice entirely and ... continue reading


Supreme Court rules affirmative action in Michigan's college admissions is unconstitutional Watch

Image of The ruling focused on a voter-passed proposal that banned the use of race in admissions decisions at public universities.

By Catholic Online (NEWS CONSORTIUM)

Hailed as a milestone in a decades-long discourse, the Supreme Court has upheld a ban on the use of race in admission decisions at Michigan's public universities. Marked by protests in the streets of Ann Arbor and previous Supreme Court rulings, it was noted ... continue reading


Is affrimative action dead? SCOTUS rules on who can decide the issue Watch

Image of A ruling by the Supreme Court allows states to decide on whether they use a race-conscious policy in admitting students to advanced public education.

By Catholic Online (NEWS CONSORTIUM)

The Supreme Court struck a blow against those seeking to trample on the rights of states, upholding a Michigan voter initiative which banned racial preferences when considering admission into one of the states' public universities, on April 22. LOS ANGELES, CA ... continue reading


Exxon Mobil must pay the piper: High court rejects appeal on $105 million verdict Watch

Image of MTBE is an oxygen-containing substance that is added to gasoline to promote more complete combustion and reduce air pollution.

By Catholic Online (NEWS CONSORTIUM)

They were found guilty way back in 2009 and now must pay for their transgressions. The U.S. Supreme Court has declined to overturn a $105 million verdict against Exxon Mobil for contaminating drinking wells in the New York City borough of Queens. LOS ANGELES, CA ... continue reading


He just keeps coming and coming! Highest - and longest period of taxation proposed by President Obama Watch

Image of Under Obama's budget proposal, according to the CBO, the budget will never balance.

By Catholic Online (NEWS CONSORTIUM)

President Barack Obama called for what would be the highest level of sustained taxation ever imposed on the American people. According to the analysis published last week by the Congressional Budget Office, the plan was included in the budget proposal Obama ... continue reading


A new Civil War? Lawmakers meet to discuss taking back federal lands for the states Watch

Image of Lawmakers met in Salt Lake City to discuss how the federal government has been using lands in the Western states.

By Catholic Online (NEWS CONSORTIUM)

Lawmakers from the Western states gathered in Salt lake City last Friday to discuss what happened on the Bundy ranch in Nevada and to say that it is time for the states, not the federal government, to manage those resources for the good of their people. LOS ANGELES, CA ... continue reading


INCOME TAXES? 'If it reaches a certain point, perhaps you should revolt,' Justice Scalia tells students Watch

Image of Justice Scalia told the students that the justices do not give credence to partisan politics, and that he doesn't care which party controls the White House. He stands by a theory of

By Catholic Online (NEWS CONSORTIUM)

It came as a most bit of unorthodox advice, from a lawmaker to an audience of impressionable minds. While speaking at the University Of Tennessee College Of Law last week, Supreme Court Justice Antonin Scalia was asked by a student about his interpretation of ... continue reading


DECLARED INVALID: North Dakota abortion ban overturned by federal judge Watch

Image of North Dakota has passed new abortion restrictions in recent years. Abortion supporters have declared North Dakota's fetal heartbeat law as the most restrictive in the country.

By Catholic Online (NEWS CONSORTIUM)

A North Dakota law banning abortions when a fetal heartbeat can be detected, as early as six weeks into pregnancy, has been overturned by a federal judge. The law is "invalid and unconstitutional," according to U.S. District Judge Daniel Hovland, who declared ... continue reading


Evidence of corruption: Newly disclosed emails show Lois Lerner WAS in contact with the DOJ over conservative political groups Watch

Image of The truth is, only I am allowed to lie and dodge questions, not private citizens or their political groups.

By Catholic Online (NEWS CONSORTIUM)

The Lois Lerner - Eric Holder scandal has hit the fan with the court ordered release of documents which implicate both in breaking the law to persecute and potentially prosecute conservative non-profit organizations. This issue has been the subject of Congressional ... 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, Acts 3:1-10
1 Once, when Peter and John were going up to the ... Read More

Psalm, Psalms 105:1-2, 3-4, 6-7, 8-9
1 Alleluia! Give thanks to Yahweh, call on his name, ... Read More

Gospel, Luke 24:13-35
13 Now that very same day, two of them were on their ... Read More

Saint of the Day

Saint of the Day for April 23rd, 2014 Image

St. George
April 23: Pictures of St. George usually show him killing a dragon to ... 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