Tag Archives: Socialized Medicine

Was Obama lying to you about keeping your health care plan?

Consider this article in the Wall Street Journal.

Excerpt:

Among President Obama’s core health-care promises was that Americans can keep their current coverage if they like it. Among the reasons that a new ObamaCare squall blows in every other day is that this claim simply is not true, as people are discovering.

The latest fracas was incited by Janet Adamy’s scoop in the Journal this week that McDonald’s Corp. may be forced to cancel its current coverage for 29,500 employees as a result of ObamaCare. McDonald’s told Health and Human Services regulators that new mandates will make its plans “economically prohibitive” and cause “a huge disruption” unless it gets a waiver.

[…]At issue in the McDonald’s dust-up is a type of low-cost, low-benefit insurance known as “mini-med.” These plans cover most medical services but generally have an annual deductible or benefit cap between $1,000 and $10,000. Unlike more comprehensive plans, there’s no catastrophic coverage. Essentially, the very low premiums—under $100 a month—amount to prepaying for routine expenses like office checkups and E.R. visits.

Around 2.5 million consumers are covered by “mini-med” policies, most of them concentrated in low-wage industries like fast food, hospitality and retail that have large numbers of part-time or temporary workers. In the case of the restaurants, 75% of the workforce turns over every year and nearly half are under age 25. Mini-med plans are a temporary stopgap for businesses that have low margins and face high labor and health costs.

But Democrats hate mini-med and other skinny-benefit plans, calling them “underinsurance.” ObamaCare is meant to run them out of the market by mandating benefits, eliminating coverage caps and certain technical rules about how premiums must be spent. This despite the fact that Arkansas, Connecticut and Tennessee sponsor their own mini-med plans for state residents as better than having no insurance at all.

In other words, the choice is between relatively affordable coverage that isn’t as generous as Democrats think it should be and dumping coverage entirely. McDonald’s may eventually offer the high-cost plans that Ms. Sebelius favors, or get its waiver, but many of its less profitable or smaller competitors won’t. While subsidized ObamaCare options will be available in 2014, those costs will merely be transferred to taxpayers.

Radical pro-abortion extremist Kathleen Sebelius is in the news lately, intimidating private businesses for refusing to make bricks without straw.

Michelle Malkin wrote about it.

Excerpt:

In February, the White House coordinated a demonization campaign against Anthem Blue Cross in California for raising rates. Obama singled out the company in a “60 Minutes” interview, and Sebelius sent a nasty-gram demanding that Anthem “justify” its rate hikes to the federal government. A private company trying to survive in the marketplace was forced to “explain” itself to federal bureaucrats and career politicians who have never run a business (successful or otherwise) in their lives. Sebelius went even further. She called on Anthem to provide public disclosure on how the rate increases would be spent —  a mandate that no other private companies must follow.

We already have a federal pay czar requiring companies to justify their pay raises and claiming authority to claw back bonuses already paid. Will the White House next demand that other businesses —  not just health insurers —  justify price increases deemed unreasonable, excessive or “extraordinary”?

On Capitol Hill, Democratic chief inquisitor Henry Waxman trained his sights on executives from Deere, Caterpillar, Verizon and AT&T in a brass-knuckled effort to silence companies speaking out about the cost implications and financial burdens of Obamacare. He scheduled an April 21 show trial of corporate heads who dutifully reported writedowns related to the Obamacare mandates. Obama Commerce Secretary Gary Locke joined in on the witch-hunt, pummeling the companies on the White House blog and TV airwaves for their “premature” and “irresponsible” disclosures.

After the Democrats’ own congressional staff pointed out that the companies “acted properly and in accordance with accounting standards” in submitting filings that were required by law, Waxman called off the hounds. But it was a temporary reprieve. Sebelius’ threat last week against individual market health insurers who raise rates to cope with new federal coverage mandates will be far from this desperate administration’s last.

As health costs skyrocket, doctors abandon the profession, hospitals lay off workers and private insurers shut down, the only way to quell the Obamacare backlash will be through an even more thuggish campaign to demonize, marginalize and silence nationwide dissent.

Here are some amusing responses to her Soviet-style bullying from Wall Street Journal readers.

Now you know why companies are terrified of government – and why they aren’t hiring here. Maybe they are hiring abroad, but not here.

Democrats don’t understand the effects of their policies – the purpose of the policies they enact is not to make our lives better. The purpose of their policies is to make them feel good about themselves. Their good intentions matter more than actual results. They think they are morally superior, and they balk when we don’t worship them for failing to understand economic realities. “But we are good people with good intentions”, they say, “you’re too stupid to run your own lives – you need our advanced training in socialism to make your lives better”. It’s not good enough.

Obamacare causes companies to drop health insurance coverage

Story here in the radically left-wing anti-american New York Times. (H/T ECM)

Excerpt:

The Principal Financial Group announced on Thursday that it planned to stop selling health insurance, another sign of upheaval emerging among insurers as the new federal health law starts to take effect.

The company, based in Iowa, provides coverage to about 840,000 people who receive their insurance through an employer.

Principal’s decision closely tracks moves by other insurers that have indicated in recent weeks that they plan to drop out of certain segments of the market, like the business of selling child-only policies. State regulators say some insurance companies are already threatening to leave particular markets because of the new law. And some regulators in states like Maine and Iowa have asked the Obama administration to give insurers more time to comply with some of the new rules.

[…]More insurers are likely to follow Principal’s lead, especially as they try to meet the new rules that require plans to spend at least 80 cents of every dollar they collect in premiums on the welfare of their customers. Many of the big insurers have been lobbying federal officials to forestall or drastically alter those rules.

“It’s just going to drive the little guys out,” said Robert Laszewski, a health policy consultant in Alexandria, Va. Smaller players like Principal in states like Iowa, Missouri and elsewhere will not be able to compete because they do not have the resources and economies of scale of players like UnitedHealth, which is among the nation’s largest health insurers.

Mr. Laszewski is worried that the ensuing concentration is likely to lead to higher prices because large players will no longer face the competition from the smaller plans. “It’s just the UnitedHealthcare full employment act,” he said.

So basically Obama passed a plan to destroy competition, leaving consumers with fewer choices and paving the way for increased health insurance premiums. And now he wants to go on another vacation because he is doing such a good job. (H/T ECM)

Health insurers are dropping coverage of children

You know those mandates that force insurance companies to cover children of adults until they are 26 years old? And the ones that forbid rejecting children who have pre-existing conditions? Yeah that costs insurance companies money. Can you believe that? Health care costs money! It costs more money to cover people for mandated coverages! Who could have foreseen that? Not Obama and his merry band of tenured Ivy League hermits, who have never held private sector jobs in their entire lives.

Story from The Hill. (H/T Health Care BS via ECM)

Excerpt:

Health plans in at least four states have announced they’re dropping children’s coverage just days ahead of new rules created by the healthcare reform law, according to the liberal grassroots group Health Care for America Now (HCAN).

The new healthcare law forbids insurers from turning down children with pre-existing conditions starting Thursday, one of several reforms Democrats are eager to highlight this week as they try to build support for the law ahead of the mid-term elections. But news of insurers dropping their plans as a result of the new law has thrown a damper on that strategy and prompted fierce push-back from the administration’s allies at HCAN.

The announcement could lead to higher costs for some parents who are buying separate coverage for themselves and their children at lower cost than the family coverage that’s available to them.

[…]Health plans and state insurance commissioners in July raised concerns that the new rules could lead some insurers to stop children-only coverage because families could wait until their children get sick to buy coverage.

[…]…insurers including WellPoint and CoventryOne have announced in recent days that they’re dropping children’s coverage in California, Colorado, Ohio and Missouri, according to HCAN.

Yeah, insurance companies don’t like being forced to add coverages, (= risk of having to pay claims), while keeping premiums the same. It increases their losses. And if they can’t raise premiums to cover the increased exposure to claims on these additional coverages, then they go out of business. And then you get to pay for your own health care costs out-of-pocket.

The only person who did not see this coming is Barack Obama. He understands less about economics than my keyboard.

Here is my previous post about Connecticut raising their health premiums 20% or more to respond to Obamacare.