WILL OBAMA BAILOUT THE INSURANCE COMPANIES

(4H) 2/15/14
The latest revelation about his horrible law is the presence of a “risk Corridor” (THIS WAS IN A COUPLE OF MY EARLIER BLOGS) a euphemism for an insurance industry bailout that will occur sometime in the next year. The law depends upon the voluntary participation of insurers. Private citizens are compelled to purchase insurance, but the insurers are free to walk away from OBC.
Dems put in place guarantees to cover insurance industry losses for the first few years of the program. The total cost could feasibly run into the tens of billions. Krauthammer argued “that ending the bailouts should be the first order of business for conservatives in 2014”. James Capretta, Yuval Levin, Ramesh Ponnuru and other have argued that the bailout should be a focus of conservative looking to stop OBC.
Conservatives overlapping interest in limiting the ability of organized labor, consumer advocates, and the environmentalist left to use government to regulate the economy. We need to limit Washington’s power for businesses, which is to protect the bottom line.
A tax carve out to GE, the Auto Workers, the NLRB, is being used by politicians to use the governments power for personal or political ends. While attacking the republicans by bemoaning corporate fat cats, they rake in corporate donation hand over fist. Nobody perfected this hypocrisy quite like Clinton. He funded their 1996 convention by donations from Seagrams and MCI.
The NEW LEFT jointed organized labor in demanding governmental regulation of the economy in general and business in particular. It was the democratic allies in congress who passed The Federal Election Campaign Act of 1971, which legalized labor PAC activity.
It is now about padding the bottom line. Thus a quasi-socialist democrat can be a friend of business, provided he is willing to fight for a special carve-out during an obscure subcommittee markup of a complicated. 1000 page plus page bill about which the public knows nothing. Political scientists used to speak of “iron triangles” connecting lobbyist, bureaucrats and legislators.
Politicians are always in search of “valence” issues that split the public 80-20. Inappropriate access to government largesse is such an issue.
Leadership form conservatives on this issue would help rebrand their movement.
It is necessary to deal with this problem in order to peel back OBC, the quintessential product of today’s venomous policy-making process.
Democrats have effectively purchased private sector buy-in through such policies as this “RISK CORRIDOR”. In fact OBC festooned with payouts to every imaginable business and trade group that has a stake in American health care. These were important not merely in securing passage of the law in the firs place, but also I sustaining it over time because they give these groups a vested interest in it ”success”.
To repeal this law, it must be shown how the law is hurting people, develop feasible policy alternatives and generally keep the issue front and center before the public.
The demagogues who railed against greedy insurance companies are now set to bail those companies out, even as average people have to pay increasingly onerous tax penalties to guarantee perpetual profits for the industry.

Source—weekly standard, jay cost. Washington post

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