As Congress rushes to pass an omnibus tax/spending bill for the coming year, it’s concocting a special tax break for health-insurance companies.
And it amounts to a back-door bailout.
Until this week, insurance-company lobbyists and their allies in the White House were pushing for an outright bailout, spending taxpayer dollars to cover what insurers are losing on ObamaCare plans to persuade insurers to keep selling them.
That so infuriated the public that DC insiders switched gears. Now they’re offering a tax break for the whole health-insurance industry.
Don’t be fooled. This is good news for the insurers — but only insurers. The taxpayers are still on the losing side in this crony-capitalism deal.
ObamaCare is collapsing like a house of cards. Last week, insurance giant CIGNA hinted it will drop out of ObamaCare after 2016. Earlier, the biggest insurer in the nation, UnitedHealthcare, revealed it will likely quit ObamaCare after 2016. Though these insurers are highly profitable overall (their stocks are soaring), they’re losing billions trying to sell the unpopular ObamaCare plans.
If insurers drop out of ObamaCare, the president’s health law will collapse. And that’s not the only threat to the disastrous health-care law: Republicans are still trying to kill it, too.
Last week, the Senate passed a bill to repeal the Affordable Care Act. That was mere Kabuki theater, because President Obama will veto it. What matters is what Congress is doing in this week’s bill to keep insurers happy.