Democrats are setting Republicans up for failure

Yesterday I posted Rush’s interview with “Stacy the insurance lady” where she exposed how ObamaCare raises the amount per premium that insurance companies must pay on claims from 65% to 85%, which leaves only 15% to pay for administrative/building and catastrophe reserves. Not only that, but after going through the legislation trying to prove her claim, I found SEC. 2718 that states that any of the 85% that isn’t spent on claims must be refunded to the enrollees in the form of a rebate. That 85% now becomes completely untouchable. Add to this the fact that insurance companies must now eat all risk in the form of accepting anyone with a preexisting condition and must also pay 100% of preventive care such as colonoscopies and mammograms. I would also imagine they will have to create a new department with their 15% to manage the new rebate program.  It was in Stacy’s opinion that the insurance companies would go bankrupt in a couple of years under this new financial strain.

So let’s play this out. Republicans take over the congress in 2010 but are unable to repeal the legislation due to not controlling the executive. Insurance premiums rise beginning in 2011 as the insurance companies try and earn enough to stay afloat and they will continue to be demonized by the Democrats and the MSM. In a couple of years we find ourselves at a crisis point where the insurance companies are failing due to the new regulations and the Republican congress is left holding the ball.  What do they do? Do they bail out the insurance companies? If they don’t then what solution will they employ? What structure will be there to put in place if they let them fail?

If they do bail out the insurance companies to keep them afloat, surely Republicans will be demonized by the Democrats and the MSM, and it will seem that the Dems were telling the truth the whole time, that Republicans are shills for the insurance companies; unless of course they bail them out and take them over at the same time so that the insurance companies are now government entities. I’d bet money that Democrats would love that and surely Obama would sign that bill.

So all this talk of “you can keep your insurance if you like it” will look true until the premiums skyrocket and the insurance companies fail. It will look like the American people are once again victims of the insurance companies. Unless Republicans can stop these new regulations, I don’t see how we avoid becoming a single payer system in the next few years.

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8 thoughts on “Democrats are setting Republicans up for failure

  1. Yes, it has been my expectation that the industry will be socialized in a very few years, after it is proven that “the industry can't be trusted to run itself.”

    Point in fact, however: insurance companies don' make their profit (at least not all of it) from excessive premiums. They are financial institutions who invest premiums while they have them in their possession. Their money comes from the interest they take in on their investments. (Seems kind of speculative in the investment market of the last 3 decades, doesn't it?)

  2. People spend outrageous money on insurance to begin with, just for the insurance to look for technicalities on why they don't need to cover you. Get your thumb cut off and think you're protected with your finger insurance, they'll say the thumb isn't a finger. Once a storm cause a tree to fall on my mother's car. She thought she was cover because of natural disaster insurance. The insurance company said they wouldn't pay because “it was an act of God.”

  3. Well, they can still repeal this thing if we can just get ENOUGH of them in BOTH chambers to OVERRIDE Obama's veto. So…OUR job is to SOMEHOW get over 2/3 of the House and 2/3 of the Senate FILLED WITH REPUBLICANS who will STAY TRUE to their conservative claims. HARD I know…but NOT IMPOSSIBLE.

  4. We must distroy obama and the democrat party and send them to hell , where they came from and where they belong ! Everyone needs to register as an democrat ( affilliation means nothing but pride and ignorance ) and vote for the second most popular democrat ( excluding obama ) in the primary elections . Then switch and vote for the most popular independent or republican in the general elections . obama wants to have illiegal aliens to vote with amenisty , allow prisoners to vote , allow people who reside in multiple states to vote multiple times . When we do said above we can offset obamas plans for corruption and defeat the democrat party ! We must control all offices from city council , mayor and up . WE THE PEOPLE and our country are in the fight for our lives , for where there is no freedom , there is no life !

  5. It's the whole Fannie/Freddie house of cards all over again, innit? Dems are creating a problem that will only come to a head when a Republican is in charge. Then, they can claim it was Republican policies that caused the problem, and the dumb general public will buy it.

  6. I believe that to be the plan but the success of such a plan is contingent on the Republicans not being aware of it. Many people have awakened and are aware of how the left intends to operate. It is up to all of us to keep informing our friends and relatives about the Health Care package and point out such things as the IRS being the inforcer with 16,000 new IRS employees and that the mandate doesn't start until 2014 afterr the next presidential election. Also, the Republicans have been saying that premiums will have to go up to cover those who cannot afford insurance. Once that happens in January they should say: “we told you so!”

  7. Its pretty obvious we need to repel the entire hc bill would be the first place to start. i can see the insurance companies putting alot of money in to the next mid term election to get republicans on board and in controll so when 2012 comes we can get obama out. republicans take controll, repel the entire bill while keep fighting it in the courts. im just suprised the insurance industry as a whole didnt fight against this more. what is really in it for them except for them to go out of business in 2-5 years as i see it and gov taking total control of health care. you dont have to be a genious to see this coming.

  8. Think of the flip side. Since they won't have Executive control, the GOP can only posture anyway. If they initiate a bill to repeal, but Obama won't sign it, then it is still his. The execution is HIS bill, not the GOP.

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