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A Complicated Enemy: Obama Seeks to Vilify Health Insurers, Give Them $336 Billion Check
March 08, 2010 6:20 PM
ABC’s Z. Byron Wolf reports: President Obama and Democrats launched a campaign to vilify insurance companies in the final stretch of their health reform effort.
Republicans, meanwhile, pointed out that those very same insurance companies would get huge checks from the government if health reform is enacted.
“(Health Insurers) will keep on doing this for as long as they can get away with it. This is no secret,” the president said. “They're telling their investors this – ‘We are in the money. We are going to keep on making big profits even though a lot of folks are going to be put under hardship,’” the President told supporters at a stop in Pennsylvania today.
HHS Secretary Kathleen Sebelius, meanwhile, wrote to insurance company executives demanding that they justify premium hikes.
Neither mentioned that the Senate health reform bill, which is the basis for Democrats' last best chance at comprehensive reform, would give the insurance companies millions of new customers required by law to buy health insurance. It would also require insurers to cover everyone, regardless of age, gender or pre-existing condition.
To help pay for the new insurance requirements the government would give to people money to buy insurance - $336 billion over the next ten years. That money, ultimately, would have to go to... drum roll... insurance companies.
People without employer-sponsored insurance who make too much money to qualify for Medicaid and less than about $88,000 for a family of four, would get tax credits to help them buy insurance on the open market. But the payment of the tax credits would be made, point out Republican researchers, directly to insurance companies. See page 37 here of the Senate Finance Committee's exhaustive explanation of the plan:
During the 2008 Presidential campaign, then-Senator Obama criticized a proposal by Sen. John McCain because it would send government help for people to buy insurance directly to insurance companies.
“But The New Tax Credit [For Health Insurance] He’s Proposing? That Wouldn’t Go To You. It Would Go Directly To Your Insurance Company – Not Your Bank Account," said Obama in October on the Campaign trail.
And yet that’s exactly what Democrats' proposal would do and why so many would prefer public insurance option to compete with the private market. Supporting the Senate bill will be tough for many liberal Democrats in the House.
To the Republicans’ (and Obama’s on the campaign trail) point about the payments going directly to insurance companies, remember that people with employer-sponsored insurance or current federal medical benefits do not usually get a separate check to buy insurance either. They pay premiums directly to the insurance company and so does their employer. The Senate proposal would create a similar relationship between people who don't have employer-based insurance and the government.
So why do Insurance companies, if they're set to receive more than $330 billion in government subsidies to insure people without insurance now oppose the Senate bill?
"Health plans proposed more than a year ago robust insurance market reforms and new consumer protections to guarantee coverage for pre-existing conditions. Much more needs to be done in the current legislation to address the skyrocketing cost of medical care, which is making health care coverage unaffordable for working families and small businesses," said Robert Zirkelbach, a spokesman from America's Health Insurance Plans, in a statement today.
He argued that health insurers should not be targeted by the President and their profits are lower by margin than other sectors in the health industry.
"For every dollar spent on health care in America, less than one penny goes towards health plan profits. The focus needs to be on the other 99 cents," he said.
March 8, 2010 | Permalink | Share | User Comments (207)
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Yet another dart thrown by the leftist regime of Comrade Obama at the pillars of the traditional USA. Don't think for a second that I and many "conservatives" don't criticize "big business" for it's lack of ethics BUT it's a far cry from the campaign of the Obamanistas to destroy the core of USA's economy. They WANT you to be dependent on being in the "good graces" of the politicians in power. Orwell's Animal Farm IS Obama World!
Posted by: Jack Frost | Mar 8, 2010 6:37:16 PM
Where are the profits? Why doesn't anyone ever present facts to support or refute these arguments? What is the 10 year trend for both profit margin (the percentage compared to expenses), and gross profit amount in the industry (and for the big 3)?
Posted by: Todd | Mar 8, 2010 6:38:36 PM
Of course insurance co's. make out huge by bringing in another 30million people who weren't previously on the books... what do you think this is all about? That's why they sit on their hands while Obama browbeats them...
Posted by: bob | Mar 8, 2010 6:39:00 PM
I do not understand how anyone in their right mind can believe a single word from this person's mouth. Everything Mr. Obama professed during his campaign he has reneged upon. When I was a young boy I viewed Huntly and Brinkly, and of course Walter Conkrite and though the word of god had spoken. The news was delivered straight forward without bias. There was much investigation into the truth. Today, sadly the only respected newssource is FOX news.
Posted by: Commonsense58 | Mar 8, 2010 6:39:12 PM
Can anyone say with a straight face that Obama is a rational adult? He seems the personification of a 1960's flower-child radical - all emotion and arrogance. A true embarassment and danger to our country.
Posted by: Jack Frost | Mar 8, 2010 6:39:20 PM
That look of abject panic on Barack's face is him wondering where affirmative action is to drag him across the finish line. Just like Columbia, just like Harvard, just like Harvard Law Review, just like U of Chicago faculty. He can't figure out what the problem is.
Posted by: Carlito | Mar 8, 2010 6:40:58 PM
Like the bankers on old that supported bank reform to usher in the 1913 FEDRES.
Sold out again by politicans and special interests!
Posted by: Jack | Mar 8, 2010 6:50:08 PM
Obama smokes too much, drink too much and talk too much.
Posted by: myohmy | Mar 8, 2010 6:50:46 PM
We are skrewed. If this man gets his way, America will change for the worse. Health Care will degrade and the cost will significantly increase for the average American. The man is blind.
Posted by: DavidArizona | Mar 8, 2010 6:51:03 PM
The thrill is gone and the charm only works on haive college kids, and the liberal media swooners.
When those college kids wake up and realize Obama wants to control every aspect of their lives, when they realize he has wrecked their future with massive debt--they will abandon him too.
I'm convinced Obama is starting to crack up mentally. He cannot accept how far he has fallen in just one year.
Posted by: mick | Mar 8, 2010 6:54:44 PM
50 Billion here, 1 Trillion there. Obama's spending is starting to add up to some real money.
Posted by: Mike Jones | Mar 8, 2010 6:58:19 PM
Thanks to ABC’s Z. Byron Wolf for reporting this. Looks like the news stations are acting like news stations again and reporting the truth without bias.
Posted by: Woofie | Mar 8, 2010 6:59:34 PM
doctors study til they are 30 to learn how to save your life...and Obama wants to tax/make them become govt employees/ignore the cost of the' cover yer arse insurance'. Dont you get it?..Obama wants to pay them LESS than a federal employee janitor...(after taxes) dont you GET it? in canada the average doc makes 80k after expenses..OK YOU spend half your life learning to be a doc... and ask america to pay to same as a plumber. THINK! ppl
Posted by: ric | Mar 8, 2010 7:00:28 PM
A pitch man is all Obama is. He rattles on about health care but he never brings any facts about this plan. Will our employers just drop our health care plans & we have to fend for ourselves? He hasn't said a word about premium costs which I suspect will be higher than we pay now. People are scared because he's hiding the facts.
Posted by: Kevin | Mar 8, 2010 7:03:20 PM
I say all this bill really needed to be was one page and on that single page it was to say "you must purchase and carry health insurance at all times or face punishment of a severe fine or worse imprisonment"
Funny how during the 1920's recession the federal gov't actually cut its budget in half and the recession ended.
why do we consistently go against common sense thinking and keep growing our spending when we dont have the money to do so?
Posted by: Carl | Mar 8, 2010 7:03:33 PM
obama vilifies an AMERICAN company making money?...yep he does it EVERY day. dont forget... americans invest in the stock of these companies..GET IT? it's easy to vilify company X...and foeget to watch that Obama just reduced the stock price of company X by 20%. and idiotically NOT call that a .. tax on americans...when he says "not one dime" he forgets that every time he opens his mouth he loses ppl money
Posted by: ric | Mar 8, 2010 7:07:29 PM
I don't buy the insurance companys claims that only 1 cent on the dollar goes to profit.
I'm a fit and healthy 38yr old male. Two years ago my health insurance cost $271 a month. I have never needed to or gone to the doctors office. Yet over the past two years Kaiser has rasied my rate $113 to $384/month. $60 raise last year and another $54 this year.
There is no way to justify a $100 a month increase in just 2 years for a healthy person. I've actually canceled my medical insurance because of all of unjustifiable increases like this especially in our current economy.
Posted by: Sean | Mar 8, 2010 7:08:40 PM
Fox & the internet, helped people who refused to be like Brainwashed Zombies listening to Liberal mass media & not Question his experience, his thought, who he associated with, what was his "Change" all about ? Change Washington or the Constitution & US ?
Americans are NOW going to wake-up & ask questions about these Guys who we are FORCED to give our hard money too??
It was Karl Marx & his bankster Connections that bank rolled him & his Book... Why ? Banksters knew the money they could make off of Free labor was the grandest way, when government forces people to pay from their Labor..
It was Karl Marx that called the "FREE Market"- Capitolism...
Posted by: Gina D. | Mar 8, 2010 7:12:57 PM
Anyone who wants government to take over healthcare and continue to subjugate aspects of the capitalistic system are enemies of America. No where in our constitution is a government takeover of any aspect of the free market mentioned and so their actions are unconstitutional. To try is treasonous in my opinion.
Posted by: clarify | Mar 8, 2010 7:15:09 PM
@Sean - Your premiums are increasing to cover other deadbeat's premiums, not yours.
It's the same thing with your SS payments - they are going to pay somebody else's income today, not your income in the future.
Gotta lover progressivism.
Posted by: TheWiseOne | Mar 8, 2010 7:18:58 PM
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