Tuesday, October 4, 2016

Obama owes $5 billion to Insurance Companies

Obama to Bypass Congress to Pay Obamacare "Debt", by Kerry Lear 10/3/16

With only a few months left as president, Obama is scrambling to pay insurance providers the money they are owed under the Affordable Care Act.

The Justice Department is trying to settle lawsuits, where the insurance companies are suing the government for the promised funds.

“Justice Department officials have privately told several health plans suing over the unpaid money that they are eager to negotiate a broad settlement, which could end up offering payments to about 175 health plans selling coverage on ACA marketplaces, according to insurance executives and lawyers familiar with the talks,” writes The Washington Post.

The government owes $5 billion to insurance companies for the cost of covering seriously ill patients. Many insurers have lost so much money from participating in the ObamaCare exchanges, that they have been forced to pull out. 

So where will the government get these funds? “The payments most likely would draw from an obscure Treasury Department fund intended to cover federal legal claims, the executives and lawyers said. This approach would get around a recent congressional ban on the use of Health and Human Services money to pay the insurers,” writes The Washington Post.

Add this to the list of ways Obama has tried to bypass Congress in his presidency.

The GOP has been notoriously against the ACA and allowing bailouts for the insurance industry. “It’s an end run on the clear . . . intent of Congress,” said Rep. H. Morgan Griffith (Va.).

“One health plan executive, whose attorney has spoken with Justice officials, said the department is trying to reach an agreement with suing insurers in the next two weeks on what percentage of the remaining $2.5 billion would be paid out.

At that point, the same offer would be made to every other insurer owed money. A judge would need to approve the arrangement, according to the executive, who spoke about the pending litigation on the condition of anonymity,” writes The Washington Post.  

Author’s Note: Again, when will we stop the bleeding? The ObamaCare is already a proven failure and now more taxpayer’s dollars will be wasted. Not to mention, Obama has found another devious way to offer a bailout to the insurance companies.

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http://punchingbagpost.com/obama-to-bypass-congress-to-pay-obamacare-debt

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