By Steve House
Woke up this morning to stories that Mitch McConnell is willing to consider a bailout for the insurance industry provided the democrats agree to some reforms including allowing states to decide some of the benefits offered by insurance in those states rather than live with the ObamaCare mandates.
I am confused. After last weeks news that the health insurance companies make record profits why is a bailout needed. A bailout should never be used anyway. We were told that we needed to bail out the auto industry because they were broke and lots of people were going to lose their jobs. We were told we had to bailout banks because they were also failing financially and it would cripple the US economy. How do you bailout an industry with record profits. You don’t because it isn’t a bailout. It is an attempt to make tax payers pay insurance companies to participate in markets they don’t want to and they don’t have to. More like a bribe.
Senator McConnell and friends in the US Senate please make sure you understand that you have offered the insurance companies $175B in subsidies to stay in these markets and they left anyway and now enjoy record profits. What makes you think doubling that amount would get Aetna, United, Cigna, BCBS and others to go back in?
I can imagine the lobbying going on in this case to make a deal but this is really ridiculous. If you have to bribe someone to sell a product to someone they don’t want to do business with because you have not repealed a law you promised to repeal for 7 years you should rethink your strategy and get rid of the law causing the problem in the first place. Apparently the leadership in the Senate thinks that a market going away because it isn’t sustainable or structured properly cannot happen in America anymore. We apparently aren’t innovative enough to work our way out of it, well that can happen when you tax medical devices because you don’t want innovation and we haven’t repealed that either.