Will Obamacare Cause Need For Government Bailout Of Insurance Companies Next Year?

President Barack Obama has been constantly changing the rules of Obamacare.  To begin with, all of his exemptions and extensions are illegal and could be challenged in court if anyone wanted to.

Why?  The Patient Protection and Affordable Care Act was passed by Congress and signed into law by the President.  Any changes to the law must, by law, go through Congress first.  The president does not have the legal authority to make any changes to a law passed by Congress, yet Obama has been doing this since first taking office.

But the results of Obama’s illegal actions concerning Obamacare may lead to the catastrophic failure of the insurance industry within a year.

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Charles Krauthammer appeared on Fox News Sunday with Chris Wallace and told him that Obama has created a manmade disaster that will ruin the insurance industry and give rise to the need for a huge government bailout.

Wallace: “I want to go back to this point that George was talking about, because the President in his news conference Friday said that none of these problems get to the core of Obamacare – you can argue whether that’s true or not, but that’s what he said – and that 85 percent of Americans that benefited from the benefits that you get under Obamacare. Charles, your reaction to that, and is it possible that for all of the problems so far that they can get this worked out, and as we get – just to pick a month at random – by next November, most people are saying, ‘You know what, Obamacare’s okay?’”

Krauthammer: “It’s possible, it’s highly unlikely. One of the things that he did, one of the reasons that this strikes at the heart of Obamacare is that what he has done is to take away the financial structure underneath it. The reason the insurers are apoplectic about what just happened is because he has now told a whole class of people, ‘You don’t have to be in the exchanges.’ And these are people who are probably the healthier and the younger ones who are going to be outside of the exchanges. Which means that the cost to insurers of people left in the exchanges is going to be exorbitant. And there’s also no way he’s going to be able to hold the line on this because of the unfairness.”

“If you’re exempting people who didn’t have, who had insurance and were cancelled, and you’re exempting them from the fine and the requirement of getting insurance, there’s no way you can require and fine people who didn’t have insurance in the past. So you’re going to have an abolition of the individual mandate. You’ve already abolished or postponed the employer mandate.”

“The insurers understand that they are going to be completely ruined. And what’s going to happen as a result of this? There’s only one way out: a huge government bailout of the insurers is waiting at the end of next year, and that’s an issue that Republicans ought to focus on right now. It’s the only way that Obamacare’ll survive, and it ought to be stopped before it happens. It ought to be, Congress ought to say, ‘No bailout,’ particularly because this isn’t a natural disaster, it’s a manmade disaster.”

Other than Congress repealing Obamacare entirely, the only thing that could prevent the need for a federal government bailout of the insurance industry is the trend being seen in who had been enrolling for what.  Some are saying that many of the applications have been for Medicaid coverage under Obamacare.  If that is true and the trend holds up, then it’s possible that a significant part of the financial burden of Obamacare will be shifted to the individual states and not the insurance companies.

That may save the insurance companies, but with so many states already operating with deficit budgets, such a shift of financial responsibility could be enough push some states over the edge and into bankruptcy.  If that happens, will Obama bail out the states since it’s his manmade screw up to begin with or will he let them fail?  One way or another, it seems that we taxpayers are likely to be spending billions of dollars to pay for Obama’s gross incompetence.  But, hey, some people got a free Obama phone, didn’t they?

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