Some predicted this… and it takes crony capitalism to a whole new level. Is there no end to the corruption and backroom deals?
Greg Scandlen wrote in NCPA in January 2014:
“Unfortunately, the health insurance industry is now locked into this system. Their very survival now depends on having the government provide “risk adjustment payments” (i.e. annual bailouts). They now have only one customer — the Secretary of Health and Human Services. No one else matters.” – See more at: http://healthblog.ncpa.org/risk-adjustments-in-obamacare/?utm_source=newsletter&utm_medium=email&utm_campaign=HA#more-35605
By Kat Greene
Law360, Los Angeles (July 28, 2014, 10:11 PM ET) — Members of the Obama administration “colluded” with insurance companies to create key provisions within the Affordable Care Act that would increase insurers’ profitability and net them a “bailout” of $1 billion this year, according to a Monday report by Republicans on the House Oversight and Government Reform Committee.
According to the report, issued by Rep. Darrell Issa, R-Calif., CareFirst BlueCross Blue Shield’s CEO Chet Burrell reached out to Valerie Jarrett, a senior adviser to the president, to say insurers would increase their premiums if a certain program were implemented as originally planned. Jarrett responded that her team was “aggressively pursuing” options, the report said.
The original plan for the so-called risk corridor program called for budget-neutral implementation, according to the report. But that wouldn’t serve insurance companies, which could lose profits on the deal, the committee said…
View original post 298 more words