Yesterday I posted Rush’s interview with “Stacy the insurance lady” where she exposed how ObamaCare raises the amount per premium that insurance companies must pay on claims from 65% to 85%, which leaves only 15% to pay for administrative/building and catastrophe reserves. Not only that, but after going through the legislation trying to prove her claim, I found SEC. 2718 that states that any of the 85% that isn’t spent on claims must be refunded to the enrollees in the form of a rebate. That 85% now becomes completely untouchable. Add to this the fact that insurance companies must now eat all risk in the form of accepting anyone with a preexisting condition and must also pay 100% of preventive care such as colonoscopies and mammograms. I would also imagine they will have to create a new department with their 15% to manage the new rebate program. It was in Stacy’s opinion that the insurance companies would go bankrupt in a couple of years under this new financial strain.
So let’s play this out. Republicans take over the congress in 2010 but are unable to repeal the legislation due to not controlling the executive. Insurance premiums rise beginning in 2011 as the insurance companies try and earn enough to stay afloat and they will continue to be demonized by the Democrats and the MSM. In a couple of years we find ourselves at a crisis point where the insurance companies are failing due to the new regulations and the Republican congress is left holding the ball. What do they do? Do they bail out the insurance companies? If they don’t then what solution will they employ? What structure will be there to put in place if they let them fail?
If they do bail out the insurance companies to keep them afloat, surely Republicans will be demonized by the Democrats and the MSM, and it will seem that the Dems were telling the truth the whole time, that Republicans are shills for the insurance companies; unless of course they bail them out and take them over at the same time so that the insurance companies are now government entities. I’d bet money that Democrats would love that and surely Obama would sign that bill.
So all this talk of “you can keep your insurance if you like it” will look true until the premiums skyrocket and the insurance companies fail. It will look like the American people are once again victims of the insurance companies. Unless Republicans can stop these new regulations, I don’t see how we avoid becoming a single payer system in the next few years.
Cross posted at www.therightscoop.com