THUGOCRACY – OBAMA ADMINISTRATION THREATENS INSURANCE COMPANIES TO KEEP QUIET ABOUT RISING HEALTH CARE COSTS DUE TO LEGISLATION….OR ELSE
Posted by iusbvision on September 10, 2010
By the way this isn’t the first time – previous: OPPRESSION: OBAMA ADMINISTRATION SAYS “SHUT UP” – THREATENS HEALTH INSURANCE COMPANIES FOR POLITICAL FREE SPEECH!
This is an abuse of power and an impeachable offense. No citizen should tolerate government behaving this way.
WASHINGTON – President Barack Obama’s top health official on Thursday warned the insurance industry that the administration won’t tolerate blaming premium hikes on the new health overhaul law.
“There will be zero tolerance for this type of misinformation and unjustified rate increases,” Health and Human Services Secretary Kathleen Sebelius said in a letter to the insurance lobby.
“Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections,” Sebelius said. She warned that bad actors may be excluded from new health insurance markets that will open in 2014 under the law. They’d lose out on a big pool of customers, as many as 30 million people nationwide.
Obama’s own medicare team said that the legislation will raise costs and raise expenses to insurance companies. See the proof HERE and scroll down to Update IX.
UPDATE IX – Insurance Companies report that premiums will rise up to 9% as a direct result of the ObamaCare legislation
The health-care overhaul enacted last spring won’t significantly change national health spending over the next decade compared with projections before the law was passed, according to government figures released Thursday.
The report by federal number-crunchers casts fresh doubt on Democrats’ argument that the health-care law would curb the sharp increase in costs over the long term, the second setback this week for one of the party’s biggest legislative achievements.
The Wall Street Journal reported Wednesday that insurance companies have proposed rate increases ranging from 1% to 9% nationwide that they attribute specifically to new health-law coverage mandates.
Democrats signaled they would ratchet up pressure on the companies. “Insurers are using the consumer protections in health reform as a cover for their own greed,” said Rep. Pete Stark (D., Calif.), chairman of the House Ways and Means health subcommittee.
Michigan Rep. Dave Camp, the top Republican on that committee, said the rate increases underscore why lawmakers should repeal the legislation and replace it with changes that make care more affordable.
Regardless of the health law, national health spending has been rising in recent years and economists expect that to continue. In February, the federal Centers for Medicare and Medicaid Services projected that overall national health spending would increase an average of 6.1% a year over the next decade.
Note the source of the graph – this is the Obama Administrations own Medicare and Medicaid team’s (and likely best case scenario) numbers.
First graph, overall health costs go up.
Second graph - aggregate out-of-pocket costs will go down (because the law allows those without insurance will be able to buy coverage and walk into a hospital and when the care is complete they will be able to drop the insurance. So why carry insurance all the time? This leads us to what happens in graph 3).
Third graph – insurance companies will have to pay more for your care because of the new taxes and to cover the expense of people gaming the system (see graph 2 explanation above) which will result in raised rates for all those playing fair.
4th graph – a phony number because the ObamaCare bill looked better on paper by pushing reimbursements to doctors down, but in reality this would result in many doctors not accepting Medicare. Everyone knows that Congress will have to pass what is called “the doc fix” which will then send this number much higher. Another reason why this number went down is because ObamaCare shifts more of the burden off the federal government and onto state Medicaid programs with new unfunded mandates….. which leads us to graph five.
5th Graph – One of the ways ObamaCare was made to look better on paper is that it shifted part of the health cost burden to the states with unfunded mandates forcing states to raise your taxes to cover it. The State of Indiana hired the consulting firm Milliman Inc. to provide the state with an estimate of what the new ObamaCare mandates on the state will be and how it may impact the Indiana budget. The result is not pretty. Milliman estimates that the new mandates will cost the Indiana $3.6 billion over ten years and will result in approximately 1 in 4 Hoosiers will in some way be subsidized by the program. Imagine what that will do to the state budget and to things such as education funding. But hey, why raise taxes when the feds can pass unfunded mandates on the states and force them to raise taxes to pay for it.
So much for the Democrats and Obama’s repeated promises that the bill would lower your costs and premiums. As we have stated since we read the bill it was designed to make private health care more expensive and as Nancy Pelosi stated so “they will cry out for a public option” (see the video at the link).