Congress

Republicans Consider a Massive Bailout of the Insurance Industry

JM Ashby
Written by JM Ashby

A provision of Obamacare that redistributes funds from one insurer to another to cover the extra cost of insuring especially-sick patients has been attacked by Republicans for years.

It's a "bailout" they say. It's "corporate welfare."

You may or may not agree with that assessment, but Republicans are now considering a massive bailout of the health insurance industry necessitated by their boneheaded plan to repeal Obamacare and not replace it.

Repealing Obamacare without replacing it would likely cause the individual insurance market to collapse while a replacement is delayed for several years. Republicans don't want to be held politically responsible for their own fuck ups so they're considering a bailout.

One Republican lobbyist said that in discussions about a plan to repeal the Affordable Care Act (ACA) without a replacement, insurers are “painting a picture of the market that isn't very pretty and Republican staffers are getting the picture.”

“They want to pump money back in to the insurers without appearing like they’re giving them a handout or bailing them out,” the lobbyist added.

Republicans are considering a bailout for insurers, but they obviously aren't considering a bailout for the average people who will lose their coverage and maybe even die.

This unparalleled display of hypocrisy becomes even more audacious when you consider how they intend to pay for this bailout. The answer is they probably won't pay for it.

Between this, their planned tax cuts and an increase in defense spending, Trump and the GOP are going to spend money like we haven't seen since the George W. Bush administration. Maybe worse.

  • muselet

    Of course the Rs are contemplating funneling vast amounts of money to insurance companies. It’s what they do. It’s a vital part of their civic religion.

    Unfortunately, screwing everything up is also what they do. When the Rs are through with it, the healthcare insurance market will be FUBARed like nobody’s business and the deficit and debt will balloon.

    And ducking blame is one more thing Rs do. Somehow, this will all be blamed on the Ds (and maybe those people, if Donald Trump and Steve Bannon decide to chime in).

    Just another day that ends in a “y”.

    –alopecia

  • Badgerite

    Why not? it isn’t like they have been held accountable for any of their manipulative shit yet. And it will give them an excuse to cry “national debt clock” when they want to annihilate Medicare or Social Security. The press ain’t nothing but a toothless lapdog. And those are the good ones.

  • Dread_Pirate_Mathius

    I don’t see why this is so hard for you to understand.

    It’s only a big government handout when Democrats try to give money to poor/needy people.

    When it’s Republicans giving money to corporations, that’s (insert hand waiving) free market capitalism.

    I’ll see if I can make this clearer:
    Scenario A:
    People can’t afford their mortgages. This will collapse the banks if they default:
    A) Give the people money so they can pay their mortgages, keep their homes, and everything’s fine.
    B) Screw the people. Give money to the banks to cover their losses.
    Did you say A? BAD! BAD! (rolls up newspaper). That’s a big government handout! That’s evil. Ok, we’ll try another one.

    Scenario B:
    If people can’t afford health care, that jeopardizes the insurance market:
    A) Give the people money so they can pay for insurance, they stay healthy, the insurance companies get their money, and everything’s fine.
    B) Screw the people. Give money to the insurance companies to cover their losses.
    Did you say A again? How are you not getting this! That’s a big government handout! That’s evil. Ok, we’ll try one last one.

    Scenario C:
    Education is very expensive. Millions of American go into heavy debt trying to get educated:
    A) Make education cheaper. Forgive student debts? Guarantee low rates (eg, Canada)?
    B) Screw the students. Make it impossible to discharge student debts in bankruptcy.
    Did you say A again? (swats with rolled up newspaper). That’s an evil big government handout!

    • JMAshby

      Where did I say it’s hard to understand?

      • Dread_Pirate_Mathius

        I know you understand it, Ashby. Just trying to be humorous. 🙂