Obamacare Has No System In Place To Pay Subsidies To Insurance Companies

In most cases that I’ve known about, laws have been struck down if the agencies involved were not equipped to implement them.  So why hasn’t Congress or the courts struck down Obamacare for the same reason?

Their website is still an utter failure in so many ways.  The government’s big fix was to put a queue on the website for all of those who could not access the site so that the government can get back to them at a more inconvenient time.  Yet, there are still numerous reports of people not being able to complete their transactions, of if they do, their information is not reaching the insurance companies so they can’t issue a policy.  Then there are the reports that the insurance companies are getting multiple copies of applications from the same person and they don’t always contain the same or complete information.  And let’s not forget about the millions of people that get hit with sticker shock when they see the quotes which are hundreds of dollars a month more than what they were paying.

Now there is another major flaw in the Obamacare system being reported.  At this time, there is no system in place for the government to pay the insurance companies the subsidy money for qualifying individuals.  That’s right, the mechanism for paying the insurance companies hasn’t even been built yet.

Fox’s Megyn Kelly asks the question:

“How does the system work without a payment mechanism?  There’s no cash register.  What would make the insurance companies actually provide coverage when they haven’t been paid?”

“We reported this to you last night.  Without a way to get payment to those companies, how are people going to get coverage?  So now tonight, at 8pm, we get a report with an answer from Reuters News.  The administration is going to let the insurance companies estimate what they should get and then the feds are going to cut them a big check and figure out later what the real amounts are supposed to be.”

“That’s your money!  That is your money!”

“They’re going to do a back of the envelope, you know, the insurance companies think it’s this and then the feds are going to pay it.  Think about that for a moment.  Think about that.”

“We’re talking about one sixth of the US economy and this is the system that they’ve now settled on, at least privately late in the evening.  And then consider what the president said just this afternoon.”

Obama: “The bottom line is this law is working and will work into the future.”

The insurance companies are going to estimate and then the government is just going to take their word on the amount and cut them a check.  I want to know just how accurately the insurance companies are going to estimate what they are owed.  Are they going to fudge the numbers to include the thousands of people who are told they qualify for a subsidy of a certain amount and then informed after they submit their completed applications that they don’t qualify for the subsidies?

Don’t’ forget about Jessica Sanford, the 48 year old single mom from the state of Washington.  She was so excited about qualifying for a subsidy and signing up for her exchange provided policy that she emailed President Obama.  He quickly read her email to the public to tout how great Obamacare and the system was.  But only three days later, Sanford was informed that the system made a mistake, that she didn’t qualify for the subsidy and that her premiums were much higher than she had agreed upon.  It turns out that a lot of Washington state residents had the same thing happen to them.  Will the insurance companies include all of these botched subsidy approvals in their estimates and hope the government cuts them that big fat check and never catches what they did?

Insurance companies have a long, long history of denying covered claims and bilking patients and doctors out of millions of dollars.  So what makes the Obama administration believe that the insurance companies will be honest and forthright when submitting their estimates?

Laws have been overturned and blocked with injunctions when they haven’t worked or been enforceable but not Obamacare.  With a sixth of the US economy at stake, we the people of the United States should be demanding that Congress and the courts strike down Obamacare until they can produce a system that will work and will be able to keep the promises made to us five years ago.  There is too much at stake here to rely on a faulty computer system and estimates.  Obamacare has got to be stopped dead in its tracks NOW!