Wednesday, January 4, 2017

How the Affordable Care Act Really Became Unaffordable

Donald Trump tweeted this morning that the Democrats are to blame for the massive premium increases in the cost of Obama Care.

And that the Republicans must be careful: "the Dems own the failed ObamaCare disaster..."

If Marco Rubio were a Democrat, that might be true...

Republican researchers actually found a way to make the Affordable Care Act unaffordable two years ago.  And Marco Rubio introduced the seemingly unnoticed bill as a rider to the Omnibus Government Spending Bill.

The rider bill prohibited the Department of Health and Human Services from using government funds "to bail out" failing health insurance companies.

When the Affordable Care Act was created, insurers had no idea how much it would cost to insure the people who signed up for Obama Care. To entice the insurance companies to keep premium payments reasonable, the government created a Risk Corridor Program.  This program was set up to reimburse insurance companies who lost money during the first few years of Obama Care.  The funds for the Risk Corridor Program would come from either the excessive profits of successful insurance companies or from the government itself.   Senator Rubio's bill effectively killed the Risk Corridor Program by prohibiting the use of government funds to "bail out" failing insurance companies.

And insurance companies were fleeing from Obama Care as fast as they could. Some insurance companies folded, while others raised their rates a few months before the election.  Insurance companies lost 8 billion dollars.  So surely, the companies that survived would raise their premiums high enough to make a profit and then some.

And whose fault was it?  It had to be the Democrats!

And whose fault is it still?

Donald Trump wants you to think the Democrats own it...

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