Fellow Patriot: The voluntary financial generosity of supporters like you keeps our hard-hitting analysis coming. Please support the 2024 Year-End Campaign today. Thank you for your support! —Nate Jackson, Managing Editor

September 14, 2016

ObamaCare Cure as Bad as the Disease

Bailing out risk corridors and using failure to advance single-payer.

The Centers for Medicare and Medicaid Services (CMS) announced Friday that the Obama administration is looking to cut a deal with the plaintiffs in a group of ObamaCare lawsuits.

Yes, it’s true. The Obama administration is making a last minute patch to ObamaCare by circumventing Congress, and they only waited until 4:30 on a Friday afternoon to tell us. Standard procedure.

The lawsuits that the administration are willing to settle are all tied to the so-called Risk Corridor fix that came into play in 2014.

Risk corridors were a post-ObamaCare concoction that were introduced to the law two years ago to attempt to level out payments by insurance companies into the ObamaCare system. Insurance companies making a large amount of money were supposed to pay money into a fund that insurance companies with little money could draw out of to pay their ObamaCare tax. (Yes, for the purposes of this article, it’s a tax.)

The Obama administration was attempting to manipulate the system by charging big, bad insurance companies a fee that would be used to help poor little insurance companies meet their mandatory minimum ObamaCare payments. The trouble is the big insurance companies couldn’t cover for the little ones.

The risk corridor was first erected in 2014 and it has never worked. That year, only $362 million was paid in by insurers, but on the low end of the spectrum, poor insurers were seeking $2.87 billion. 2015 was no better.

Congress got wise early to the fact that the White House would try to paper over this problem by bailing out insurers. The House slipped in a provision to the spending package that year that expressly prohibited CMS from giving taxpayer money to cash-strapped insurers. It has been the purview of the executive branch to cover its losses on ObamaCare by throwing money at the problem.

This time unfortunately may not be much different because if CMS follows through with its proposal to settle lawsuits by companies seeking restitution under the risk corridors, then that money will come from the taxpayer funded Judgment Fund, a cash pool reserved to pay out money the federal government owes in cases that it loses.

This payout would be unconstitutional because the law and its provisions expressly forbid the federal government from making any kind of payments to insurers or any other entity seeking redress from ObamaCare. But that hasn’t stopped Obama before, and it won’t stop the Left now or in the future.

The risk corridors aren’t the only problem to come to light this week. The ObamaCare co-op in New Jersey became the 17th to fold this week. That leaves just six of the original 23 co-ops still in operation. That doesn’t mean the entire nation still isn’t being crushed by ObamaCare’s weight, only that Obama’s phony construct of forcing the states into servitude is failing.

Worse, the American Enterprise Institute’s Scott Gottlieb warns that Hillary Clinton could use the very failure of ObamaCare’s structure to introduce the public option — i.e., single-payer health care — through the states.

ObamaCare is so big and cumbersome that the government can make changes to it at any time to keep it afloat. And each payout made, each rule bent, will cost the taxpayers billions of dollars and it will make the medical bureaucracy that much more complex.

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.