Since I posted about this back when Megyn Kelly first brought national attention to the story, I think it is good to point out confirmation about the implications I spelled out. Charles Krauthammer recently declared that a bailout of the insurance companies is the inescapable plan of Obamacare.
From CNS News:
President Obama, by issuing new rules that erode Obamacare’s “financial structure,” is putting the health insurance industry – and taxpayers – at risk, author and conservative political analyst Charles Krauthammer said on Sunday.
“The insurers understand that they’re going to be completely ruined,” Krauthammer said on “Fox News Sunday” with Chris Wallace. “And what’s going to happen as a result of this? There’s only one way out, a huge government bailout of the insurers is waiting at the end of next year.“
That’s the issue Republicans should be focusing on right now, Krauthammer said.
On Thursday, the Obama administration unilaterally delayed another provision of the law, saying there will be no tax penalty for people who had their existing health insurance canceled because of the Affordable Care Act and who did not find new coverage as required by law.
“There still may be a small number of consumers who are not able to renew their existing plans and are having difficulty finding an acceptable replacement,” Health and Human Service Secretary Kathleen Sebelius wrote to Senate Democrats. “These consumers should qualify for this temporary hardship exemption,” the Associated Press quoted her as saying.
Krauthammer on Sunday said insurers “are apoplectic” about all the rule changes because it exempts another important group from the exchanges.
“And these are people who were probably healthier, and the younger ones, who are going to be outside of the exchanges. Which means that the cost to insurers of people left in the exchanges is going to be exorbitant.”
For the record, these are the same companies that decided to cooperate with Obamacare. As far as I’m concerned, if you sleep with the Devil then you will pay. Besides all that, even if one views the insurance companies as innocent victims it doesn’t follow that they should be bailed out. Everyone is going to suffer. There is no reason why others should suffer more to minimize the suffering of the insurance industry.
More importantly, if we are going to have an Obama-created crisis, the best thing to do is to “not let an emergency go to waste.” What I mean by that is that prices in the medical industry are way overdue for a correction. Healthcare costs have grown much faster than inflation due to a history of interference from the government. If insurance goes through bankruptcy prices for medical care have a chance to reset at a more realistic level.
I know it is a long shot, but we have to hope and pray that, as Obamacare blows up, something good results.