Trump Ends Illegal ObamaCare Bailout Payments to Insurance Companies

by Steve MacDonald

Trump ObamaCare - ending bailoutsIn this day and age, it’s interesting to see all three branches of government agree on something. Bailing out insurance companies against the will of the court and Congress is coming to an end.

The payments had specifically been denied by Congress but President Obama had made them anyway, drawing a rebuke from a court who said he was overstepping his powers. The case has raged for months, and both the Obama and Trump administrations had continued making payments — until now.

White House press secretary Sarah Huckabee Sanders, in a statement, said the Justice Department has concluded the judge’s ruling is correct, and there is no valid legal ability to make the payments.

What does this mean for ObamaCare?

Without that estimated 7 billion in rent-money, insurers would have to go to customers to cover the actual cost of the coverage ObamaCare mandates. Already sky-rocketing rates would go higher. Or maybe not.

The move comes just hours after Mr. Trump signed an executive order pushing his administration to allow association health plans, which would allow individuals and small businesses to join up and purchase insurance on the group market across state lines.

Association plans are a boon for those struggling with high-cost plans, though analysts say it could sap those customers — and their high premiums — from existing markets, leaving the sick and elderly to pay more because their costs are no longer subsidized by the healthy.

Combined, the association health plans and the renunciation of cost-sharing payments amount to Mr. Trump ripping the band-aid off Obamacare, forcing Congress to confront the program with all the warts it’s sprouted over the years.

ObamaCare gave s much authority to the executive branch that Presidents and Secretary’s shall-ing this or that in and out of existence will continue to plague us until Congress “takes T-Bird away.”

Will Congress bite this time?

Trump’s move to end the payments is what Congress wanted. The court claims they are illegal. Obama continued to make them because he had to to keep his signature legislation from imploding ‘too soon.’

But make no mistake. ObamaCare was built to bring down the health insurance industry while creating a massive federal bureaucracy that was meant to manage the single-payer system that would replace it. That’s been progressing as planned and will continue to do so if Congress does nothing.

I don’t think Trump wants single-payer, what he wants is the Republican majority to get John McCain’s head out of his ass, or their ass, along with the handful of other RINO’s roaming the U.S. Senate, and get to repealing that Democrat rammed-through disaster.

Insurance companies have even less incentive to tolerate ObamaCare (instead of anything else) now that those bailouts are ending.

It also forces Congress to do something and does it by acceding to “their wishes.”

Democrats can complain about the impact of rising premiums if they want but Trump will rightly blame their party for creating the curse disguised as a cure.

Republicans could complain but if they don’t also do something rising premiums could jeopardize their majority incentivizing them to act sooner rather than later.

Well Played, Mr. Trump. Well played.

Now let us see how thw weasels in Congress respond.

Leave a Comment

  • Moe Ferrel

    Thank God! The end of the healthcare abortion is near. I hope Congress grabs the bull by the horns and just pulls the government totally out of healthcare. Send it back to the states and let each state handle it. And no federal funding. Let the states fund it themselves. When the states find themselves responsible for funding healthcare they’ll realize its true cost.

    The next programs Trump needs to go after is Medicare and Medicaid. Send these programs back to the states.

  • Bryan W

    John Adams said, “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.”

    Though I’m not sure I would place President Trump or his administration in this bucket, it sure proves that Obama and his administration were not in the category of “moral.” They are supposed to follow the rules, and they ignored them wholesale. Their supporters, including some here, supported them in these immoral acts.

    Obama, Clinton, and Weinstein just makes the point that much clearer.

  • Susan Pantely

    I am not a fan of Obamacare but these are not bailouts. The insurance companies charge a premium for a plan that reimburses on average 70% of medical expenses; yet they are required to provide coverage at 90% of medical expenses to low income persons. That is a 20% shortfall! That the gov’t said they would pay.

    While the law may not have appropriated the funds, and who knows if they are legal….but please get the facts straight – this is not a bail out and the companies are required to pay this short fall which very well could put them out of business.

    • Ed Naile

      I guess when you get in on a deal with Uncle Sam – you get the short end of the stick – sooner or later.
      Wait until we do pension reform.

      • Radical Moderate

        If pension reform ever does happen the first pension that should be given 10 cents on the dollar is Barry’s.

    • Radical Moderate

      The problem came when the insurance companies agreed to make a deal with the Devil and participate in the destruction of our nations healthcare system.
      They knew full well what would happen in the end and should have told Obama to go pound sand. Unfortunately no one had the guts to stand up to that mountebank when they should have.

      • granitegrok

        It is called Crony Capitalism. Google the cases around the Healthcare Electronic Records industry and you can see who profited at whose expense (re: the latter being all of the small doctors practices).

    • granitegrok

      “While the law may not have appropriated the funds” – that IS the point!! And that it is why it went to court. The Executive branch can only spend what is appropriated by Congress – that is how our Constitutional Republic works. You can’t just toss that off with a “may not”. Else, why bother with having Congress at all – just go to a monarchial system.

      Obama just paid off the insurance companies ILLEGALLY via these risk corridors which ARE an explicit bail out if the take over of the marketplace was to do exactly what many of us on the Right said would happen (and has happened).

      Going out of business? It’s happened before in history – when socialist and communist government effectively take over markets in which they have no business in being in. Or, effectively owning by dint of legislation and regulation.

      But back to your point – ANY money expended by the Feds MUST be appropriated first. Otherwise, by definition, it IS illegal. If it was legal, Susan, the suit would not have been allowed to proceed by the Court. Given that the DOJ can’t find a legal way for Trump to continue to pay the unappropriated the money and threw in the legal towel.

  • Ed Naile

    Its real simple.
    President Trump just passed the hot potato to the Swamp – as he should.
    They allowed this Obama socialist plan to hatch.
    They can retroactively “fix” it if they can find the votes but it is theirs now.

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