CPR:
Covered California is so desperate to keep insurance companies on its Obamacare exchange that the state plans to guarantee profits to the giant corporations.
Breitbart News reported early this month that despite the annual inflation rate of only 1.6 percent, Covered California is granting healthcare insurers average premium increases of 12.5 percent. But that appears to not be enough to lure insurers to stay on the exchange, if President Trump ends U.S. Treasury “cost-sharing” side payments to insurers that the courts have ruled are illegal.
According to the a study by the non-partisan Congressional Budget Office (CBO), titled “The Effects of Terminating Payments for Cost-Sharing Reductions,” Obamacare exchange insurance premiums will spike by another 20 percent in 2018. Given that 75 percent of Obamacare enrollees received free insurance through Medicaid, the CBO estimates that the U.S. deficit will jump by another $194 billion between 2017 and 2026 as a result.
Obamacare was sold to voters on a promise to slash healthcare insurance premiums by up to $2,500 per family. But new mandatory rules caused insurance premiums to spike by 68 percent between 2010 and 2015, according to the National Association of State Legislatures.
The national average cost of healthcare for a family of four in the United States is now $17,322. But in highly-regulated California, the average family healthcare premium is even worse, at $18,045. MORE
Watchout for a big tax hit because Trump won’t bail out the moonbeam.
how long can CA. continue to give away money it doesn’t have? What happens when the bubble burst? Is this why they want to secede, so they can print their own money? No bail out should be considered due to the history of Ca’s irresponsible spending.
It is vital for liberal California to maintain the pretense that their policies are not abject failures. Of course Obamacare was going to fail, but the long term strategy was to maintain this failure until Hillary and a Democrat Congress could get single payer passed.
They are going to need to break from the Union so they can start to print their own money.
Moronic, to say the least. The State is already Billions in the red. They can’t run the state efficiently, they are not going to have the financial resources to guaranty anything to anybody.
Jerry will think another tax increase will save the day! Incorrect, economically speaking. All a tax increase does is reduce the flow of Revenue to the state. Instead of getting ahead, the state gets farther behind, which is where most of their heads are stuck up.
Why oh why don’t the taxpayers ever assure my profits???????
The out of pocket expense is only $375.94 per person every month. If you have 12 kids, the cost will be less per person.
Covered Crapuonnya!
I reckon this wouldn’t be such a boondoggle if they didn’t try to insure so much of the third world.
With MY MONEY.
Sanctuary, my ass.
I guarantee that the Seattle Mariners will win the World Series. I have no way to back up that guarantee, but I guarantee it nonetheless.
@I sell widgets by the seashore August 18, 2017 at 7:09 pm
Have you ever thought about the humanitarian benefits of widgets? Perhaps someone at The Clinton Global Initiative could explain it to you.
I had not thought about California wanting to secede so they could print their own money. Money backed by what? Unicorn farts?
Read the article and tell me just what incentive that the Insurance industry/health insurance has to leave Obamacare. Their profits are basically guaranteed and if they are not then they quit playing medicine. Record profits in health insurance, more to come…..The insurance industry is up to their eyebrows in creating and maintaining this ponzi scheme!….Shame on them and the government that lets it happen….
Do ya really think that these insurance thieves welcome competition?….PFFFT!!!…
I for one am glad that I am not subject to the IRS anymore and I pay no state taxes.
I feel for the innocents in Commiepornia who have not, or can not flee.