Publicly, President Obama loves to demonize insurance companies. But behind the scenes, Big Government and Big Insurance maintain a cozy alliance that the Obama administration actively nourishes, often at taxpayer expense. Indeed, as emails recently obtained by the House Oversight Committee show, Big Government and Big Insurance have worked together to promote Obamacare. They’ve also worked together to make sure taxpayers will help bail out insurance companies who lose money selling insurance under Obamacare — that is, unless Republicans stop this from happening. Moreover, Obama senior advisor Valerie Jarrett is among the prominent White House officials who’ve been in the middle of this collaboration between insurers and the administration — between those driven by the profit motive and those driven by the power motive.
As is detailed in the Oversight Committee’s report, shortly after the disastrous Obamacare rollout began, White House communications director Tara McGuiness and Chris Jennings, Obama’s deputy assistant for health policy, “traded talking points with numerous insurance company CEOs.” According to the report, “Ms. McGuiness and Mr. Jennings collaborated closely with Florida Blue Cross and Blue Shield CEO Patrick Geraghty. After a CBS Evening News appearance on October 11, 2013, Ms. McGuiness emailed Mr. Geraghty, ‘You were great! I watched. Thanks for the help.’”
Twelve days later, Geraghty and the respective CEOs of Aetna, Humana, the Health Care Services Corporation, Centene Corp., Wellpoint, Kaiser Permanente, Tufts Health, Health Net, CareFirst, the Blue Cross Blue Shield Association, and America’s Health Insurance Plans (AHIP) all met with Jarrett and Obama chief of staff Denis McDonough at the White House.
A few days after that, the report reveals, Jennings emailed Geraghty in advance of an appearance on Meet the Press, writing, “Pat: Tara McGuiness will probably reach out to you directly today to give you latest info and suggestions for press prep. Please advise if you need anything from me. I may call you later to make sure all is ok. Thanks so much for all.” Both McGuiness and Jennings then followed up with specific advice. After Geraghty’s appearance aired, Jennings emailed him and said, “Pat: You were extraordinary.…We were all impressed. Thank you so much! Would like to talk soon….”
Meanwhile, the Obama administration was coming under increasing political pressure — as millions of Americans found out that (contrary to Democratic messaging across the years), if they liked their health plan, that didn’t necessarily mean they could keep their health plan. After Obama lawlessly empowered himself to un-ban the plans that Obamacare had banned by law, insurers weren’t happy, so the administration responded by paying them off.
It did so by changing the rules regarding two programs buried in the bowels of Obamacare — its risk-corridor and reinsurance programs. As Jay Cost and I wrote this spring, the administration changed the rules “to funnel more money to insurers. Put simply, the administration lowered the threshold at which insurers become eligible for reinsurance money, and it made more generous the formula by which insurers get paid under the risk corridors.” In the process, Obama effectively turned the risk-corridor program into his own personal slush fund.
General Motors recalled another 718,000 of its vehicles yesterday to correct defects serious enough to require the action. This puts the number at "nearly 30 million vehicles since the start of the year, by far a record for any automaker and more than half the vehicles recalled by the industry as a whole."
This fall, voters will get another chance to register their opinion on Obamacare. President Obama’s signature legislation is causing health costs to spike, federal spending to soar, doctors to leave their profession, millions of Americans to lose their health plans, and millions more to be coerced into buying overpriced insurance against their will.
Most Americans don’t think it’s their job to bail out insurance companies who lose money under Obamacare, but that’s exactly what’s poised to happen. Obamacare’s risk-corridor program — which President Obama has been using as a slush fund to placate his insurance allies and keep them quiet about his lawlessness — shifts financial risk from insurers to taxpayers. According to the House Oversight Committee, health insurers expect Obamacare’s risk corridors to net them nearly $1 billion, at taxpayer expense, this year alone.
It has been days now (at least two of them) since General Motors has issued a recall on any of its cars. But then, the law of diminishing returns applies here. After the first 15 million, there aren’t that many GM vehicles left out there for recalling.
The bailout of GM – at a final cost to the Treasury of $10 billion and change – was a landmark event in evolution state capitalism, American-style. The company was saved, certain creditors were stiffed, the unions were protected, and the corporate culture, it seems, was not altered in any fundamental way.
The city that President Obama was credited with “saving” – before it turned out that he hadn’t – is getting a little help from Washington as it struggles through the largest municipal bankruptcy in American history.
Michigan officials and President Barack Obama'sAdministration are discussing a plan to free up $100 million in federal money to aid Detroit's retired city workers, the Detroit Free Press reported on Tuesday.
The script is familiar. General Motors’ top executive heading down to Washington to be grilled by Congress. As Joseph B. White of Market Watch reports, fifty years after the Corvair controversy that made Ralph Nader a household name:
Obamacare is like an onion: The more layers you peel back, the worse it smells. The latest revelation about this horrible law is the presence of a “risk corridor,” a euphemism for an insurance industry bailout that will occur sometime in the next year.
Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.” How can this be? Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them. The other three-quarters will be borne by American taxpayers.
Detroit failed after years of one-party rule (guess which one), mismanagement, and corruption. Businesses closed down. Buildings were left derelict until they were torched for the fun of it. Feral animals roamed the streets as the people fled. After the usual protestations that it would never happen, city officials were compelled to declare the largest municipal bankruptcy in the nation's history.
On the floor of the Senate today, Harry Reid, a Democrat, praised President Obama's auto bailout:
"As a matter of fact, Mr. President, the figures are really staggering," said Reid. "500,000 manufacturing jobs have been added, 1 million jobs have been saved due to the president's auto rescue program. So that's a fairly significant change."