Monday, January 20, 2014

Insurance Company "Bailouts" Under Obamacare

Obamacare is likely to be the premiere issue in the 2014 federal elections.  Following the unmitigated disaster of the Obamacare website launch, intense scrutiny has continued to follow the law.

One area which has drawn attention is the "bailout" of the insurance companies with the reinsurance fund and the risk corridor provisions of the law, sections 1341 and 1342, respectively.  Conservatives have proposed legislation to strip these provisions from the law.

Obamacare demands massive enrollment figures.  Absent these high enrollment numbers, particularly from healthy young people, the program will collapse under its own fiscal weight.  This exacerbates the problem of the bungled website launch.  And that, coupled with President Obama's continue use of "exemptions" for favored special interest groups, is a prescription for failure.

But what would failure mean at this point?  Some, like the Galen Institute, argue it could be a catalyst for the progressive's favored system of single-payer.  The liberals have said as much.  Galen's analysis is worth the read.  It raises several good points that seem to be missing from the debate.  Not the least of which is whether conservatives are being played by progressives in DC.

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