Insurance Bailout For Obamacare Already Here; Fox News’ Megyn Kelly Deserves An Award!

I’m beginning to realize that Obama’s campaigning on the word “audacity” was perhaps the most (or only) honest warning we ever got from this administration.

We’ve already pointed out that the so-called “back end” of the website is still under construction. It was never “fixed” because it was never built, as yet. We’ve also pointed out that, by the official numbers of the Affordable Care Act, it looks as if the insurance companies are taking a huge risk of crashing and burning. This is admitted by NPR, no less.

So put those two elements and meditate upon them:

  1. offers no way to get subsidy money to the insurance companies for each subsidized customer.
  2. The Affordable Care Act looks like it will lead to huge losses for the insurance companies as the sickest are motivated to enroll and the healthiest opt out.

Think about this: how might one of these problems be used as an excuse to solve the other one?

One hour before Megan Kelly went on the air last night Reuter’s released a story: “Short-term fix eyed for another problem with U.S. healthcare website.”

President Barack Obama’s administration has found a short-term fix to pay insurance companies for plans selected on, the not-yet-complete government website used to shop for insurance required under Obama’s healthcare program.

The Centers for Medicare and Medicaid Services (CMS) has not yet finished building the part of the website that would transfer billions of dollars in subsidies for plan premiums and cost-sharing payments to insurance companies.


The administration is planning a “workaround” for payments, said Daniel Durham, vice president for policy and regulatory affairs at America’s Health Insurance Plans.

Health plans will estimate how much they are owed, and submit that estimate to the government. Once the system is built, the government and insurers can reconcile the payments made with the plan data to “true up” payments, he said.

“The intent is to make sure plans get paid on time, which is a good thing,” Durham told Reuters.

Kelly or someone on her team saw the import of this whitewashed piece of propaganda. (Bloomberg had actually run a whitewashed report earlier, but it got lost on most people in the middle of Black Friday coverage.) She made it her lead story.

So now we see the “bailout” is already here. Marco Rubio’s proposed anti-bailout legislation will be useless. Do you think for one minute that insurance companies are going to “estimate” anything less than what will keep them profitable?

In fact, my suspicion is that this explains everything. Obama didn’t ignorantly roll out a useless website. He needed the emergency to provide noise and cover. There was never any other plan for 2014 except to cut all the insurance companies a huge check for whatever they asked for.

Tom Blumer, whose excellent post at showed me this story, takes a different approach (as did Megan Kelly’s guest). He thinks this is an anti-business scheme:

This administration move exposes the insurance companies, whether they appreciate it or not, to bully-pulpit charges of overbilling by opportunistic administration officials and leftist politicians and to deliberate withholding of payments by the government based on imaginary suspicions of unaccountable bureaucrats.

No. Obama is expecting the cooperation and support of the insurance companies. They have only complained about Obama when he tried to let people keep or get back their old insurance.

Obama is a crony capitalist corruptocrat. He’s going to feed the American people to the insurance companies. Single payer is already here: The government is going to pay the insurance companies.

When Obama says, “The law works,” he is telling you the stone, cold, truth. It is doing exactly what he wants it to do.