The Debate is Over! Obama Tosses Billions to Insurance Companies to Cover Up ObamaCare Losses

Posted by on May 21, 2014 at 9:56 am
Petraeus And Crocker Testify Before Senate On State Of Iraq War

Gee, we thought ObamaCare was working so well?

The Obama administration has quietly adjusted key provisions of its signature healthcare law to potentially make billions of additional taxpayer dollars available to the insurance industry if companies providing coverage through the Affordable Care Act lose money.

The move was buried in hundreds of pages of new regulations issued late last week. It comes as part of an intensive administration effort to hold down premium increases for next year, a top priority for the White House as the rates will be announced ahead of this fall’s congressional elections.

We thought it was sacrilegious to play politics with people’s healthcare?

They continue to argue that most insurers shouldn’t need to substantially increase premiums because safeguards in the healthcare law will protect them over the next several years.

But the change in regulations essentially provides insurers with another backup: If they keep rate increases modest over the next couple of years but lose money, the administration will tap federal funds as needed to cover shortfalls.

Although little noticed so far, the plan was already beginning to fuel a new round of attacks Tuesday from the healthcare law’s critics.

“If conservatives want to stop the illegal Obamacare insurance bailout before it starts they must start planning now,” wrote Conn Carroll, an editor of the right-leaning news site

A billion here a billion there, anything to avoid admitting this is a total disaster.

Insurers around the country have started to file proposed 2015 premiums, just as the midterm campaigns are heating up. Obamacare, as the law is often called, remains a top campaign issue, and big premium increases in states with tightly contested races could prove politically disastrous for Democrats.

But we thought they were planning to run on it?

If rates go up dramatically, consumers may also turn away from insurance marketplaces in some states, leading to their collapse.

The entire mess will collapse and we’ll all end up paying for it, particularly galling for those who said this would never work and were ignored.


2 Responses to “The Debate is Over! Obama Tosses Billions to Insurance Companies to Cover Up ObamaCare Losses”

  1. Cy Mallinson on 21/21/14 at 9:23 pm



    The States of the USA, and the People, have granted the U.S. National/Federal Government, through Congress, the power to tax, borrow and create money. (Article I, Section 8, Paragraphs 1, 2, and 5 of the U.S. Constitution plus the 16th Amendment. The “Big Four.”) The Federal Government has monopoly control over its own financing. Has this monopoly control worked out well?

    On December 31, 2000, the U.S. National Debt was $5.662 trillion. December 31, 2008, $10.700 trillion. December 31, 2011, $14.025 trillion. And, despite the November 2010 election results, and growth of the Tea Party Movement, $17.544 trillion on March 26, 2014. A 310% increase in less than fourteen years, three months. ((Source: www. Debt Reports/Debt to the Penny (Daily History/Search.))

    It can arguably be said that these taxation, borrowing and money creation powers, granted with a sense of fiduciary trust by the People and the States to the National/Federal Government, have been seriously and shamefully misused.

    Changes need to be made to end this misuse. However, the needed changes go far beyond electing more responsible congressional and Presidential representation, as necessary as these steps may be.

    Alexander Hamilton wrote Federalist Paper #30. In it he stated that the new government being proposed by the Constitution (at that time, undergoing ratification debates in the 13 original States) needed “…. a regular and adequate supply of revenue, ….” This is a true statement.

    Sadly, it is arguable to say that the current generation of political officeholders, and the enormous National/Federal bureaucracy, have taken “lock tight” control over the monopoly that controls U.S. Government funding. Despite voting (the results of the 2010 election) and the People speaking out against ever-growing waste, the situation only worsens. A question: Has the time come to break the monopoly funding control to end this problem? This write up will explain how this can be done. Actually achieving this monopoly-breaking goal is not complicated. And in the end, it should prove to be easier than you might think.

    The misuse, and potential for continued future misuse, will not be curtailed until the monopoly financing control created by the Big Four to pay for Federal expenditures is replaced by a States-based system to provide money to “the Feds.” The CONSTITUTIONAL SUPPORT TAX (the CST, www. should be that States-based system.

    The CST is a 21st Century update to Article VIII of the Articles of Confederation (the A of C.) The A of C was the first constitution-type document for the original 13 American States. The 13 States agreed to the A of C November 15, 1777. Formal ratification was on March 1, 1781. They were in effect until March 4, 1789 when the first Congress under our Constitution convened.

    Article VIII outlined how the 13 States would provide funds for the “Union” Government. Here is the full text:

    “VIII. All charges of war, and all other expenses that shall be incurred for the common defense or general welfare, and allowed by the United States in Congress assembled, shall be defrayed out of a common treasury, which shall be supplied by the several States in proportion to the value of all land within each State, granted or surveyed for any person, as such land and the buildings and improvements thereon shall be estimated according to such mode as the United States in Congress assembled, shall from time to time direct and appoint.

    The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several States within the time agreed upon by the United States in Congress assembled.”

    The CST will use an income-based formula, rather than property-values based formula as was used in Article VIII, to divide the Federal Budget among the States. This five-step formula will be fair to all States. The formula is explained in the HOW IT WORKS section of the CST website. Please also note PRESSURE POINT 4 of 8 in the PRESSURE POINTS section of the website.

    The National/Federal Government will be funded by a “Mandatory Requisitions” system on the States.

    In summary the CST will do the following:

    1. The power to lay and collect Taxes, Imposts and Excises will be repealed from Article I, Section 8, Paragraph 1 of the Constitution along with the 16th Amendment. The power to lay and collect Duties will remain with Congress, but for a specific, designated use.

    2. Article 1, Section 8, Paragraph 2, authorizing Congress’ power to borrow will also be repealed.

    3. Once Congress sets the Federal Budget each year, the dollar amount of the Budget will be divided among the States by a formula that is fair to all States. Again, please see this five-part formula in the HOW IT WORKS section of the website.

    4. It will then be up to the People of each State, and state and local officials, to decide how their State will pay its mandatory share of the Budget. This is similar to Article VIII of the Articles of Confederation.

    Why will the CST approach to Federal funding bring strict financial control to all future Federal spending?

    1. The States and the People will have over $3.5 trillion of former Federal tax and borrowed money in their hands. On short order, all of the non-Federal parties that are no longer surrendering this money to the Federals, will become a “benevolent and protective fraternal association” (BPFA) of sorts. The BPFA’s goal will be to keep as much of this $3.5 trillion as close to home as possible.

    2. In setting future Federal Budgets, the Feds and the BPFA will both want as much money as possible. An “Original” reading of the Constitution will quickly become the benchmark in the negotiations as to how the money will be divided. The non-federal parties will have a strong financial self-interest in bringing back to the State level the many powers the Federal Government has usurped over the last 100 plus years. (In Federalist 45, James Madison states the Federal powers are to be “few and defined.” These powers remaining with the States are “numerous and indefinite.” These supporting few and defined, and numerous and indefinite benchmarks will further frame the money-split debate. The 9th and 10th Amendments add support to this thinking.)

    3. The National/Federal Government, in a sense, will be like a large business in tough economic times. It will be forced to comb through its operations to “trim and lean” itself down to its “Original” constitutional functions. Has this “trimming-and-leaning” ever happened with the current uncontrolled, massive, Big Four flow of money into Federal coffers?

    4. If the National/Federal Government, through Congress, tries to shove the current massive budgetary waste onto the States, Congress will make blood enemies of State and local officials and the People. To put it in football terms, this “waste shoving” could easily result in a “career-ending injury” for any member of Congress in the next election.

    Mr. & Mrs. XXXXX, please take some time to let the CST “mentally digest.” The BPFA will exercise much greater control over the flow of money into National/Federal coffers than we taxed individuals could ever hope to achieve.

    In effect, there will be a new, currently non-existent, political-pressure structure that will force the newly reconstituted Federal Government to stay within the limited intent of the Founders. The CST is the only approach that will work. To quote President Obama, “Period.”

    A constitutional amendment has been drafted to add the CST to the Constitution. I will be pleased to forward this to you for your consideration and comment.

    Looking forward to our future correspondence. Thank you for your time and consideration.

    Cy Mallinson 1311 Manor St. Kalamazoo, MI 49006-2143 1-269-342-0410