663.) Obamacare was passed because health care prices are sky rocketing around the country. The purpose of this legislation was to bring the price of healthcare down. So to achieve that, the government came in, much like they did with the banks in 1977, and decided that they knew best how to run the health care industry. They said you can’t deny people with pre-exisitng conditions, they said you have to have health insurance, and then they levied massive tax increases on the people who build and provide health care equipment and services. All of this was somehow magically going to bring the prices down. But I have always had my reservations about this plan.
In 1977 the government tried to tell banks how to operate, and in 2008 the financial market collapsed because of it. In 2009 the government decided it knew how to run the auto industry so they bought it, they took it through bankruptcy, and according to Forbes Magazine it is headed that way again. So you can understand why I would doubt the governments ability to operate the health care industry successfully, heck they can’t even pass a budget. But the die hard progressives have been calling me a radical obama-hater for claiming that this bill will be a failure and cause the health care industry to collapse. Well, I have some more evidence to prove the failure of Obamacare
Now remember that the purpose of Obamacare was supposedly to bring down healthcare costs. Well a story from California proves that it has been a massive failure. Blue Cross of California has announced that it plans to raise premiums on its 300,000 members by 12% to offset the increase in costs caused by the Affordable Care Act. So I could end this here, proof positive that Obamacare has increased health care costs (imagine that, you raise taxes on an industry and the price goes up on the goods, wow. Seem’s progressives are always surprised by that fact). But I know that if I did, I would be opening myself up the countless attacks of progressive trolls. So I will elaborate. The progressives in California have claimed that it is unnecessary for Blue Cross of California to raise rates, because they are sitting a large reserve of cash. They could offset the increased costs caused by Obamacare rather than increase the cost to consumers, typical of a progressive they see a pile of someon else’s money and they gotta spend it. As Blue Cross of California spokes woman Lindy Wagner said, “Reserves are needed to ensure our members’ claims can be paid no matter what. We need them to protect against uncertainties like a pandemic or another crisis.” So that money is there to ensure that the insurance company actually has the money it needs to pay bills. Imagine that an insurance company who wants to be able to insure it doesn’t go bankrupt trying to pay out claims.
Now it is fair to say that sense 2006 the surplus has grown from $2.2 billion to $3.9 billion. So progressives naturally cite that this is proof they don’t need to raise rates, they are just hoarding money. As usual though, they fail to examine the trends around that money. The company has stated that it is raising its rates because of Obamacare, the legislation is going to flood the market with new customers the company is expects an exponential raise in costs. Ms. Wagner said, “It’s a once-in-a-lifetime change in the healthcare market that will bring a lot of volatility, and we need higher reserves for that,“. So clearly this is just another example of an evil company trying to exploit the little man. Of course the evil spokes woman would say that they are doing this to prepare for the future. The truth must be that they are trying to line their pockets with exorbitant profits. Well actually, no you see even with the rate hikes Blue Cross of California still expects to lose money in the individual insurance market next year. Worse yet, the reserve has grown slower because Blue Shield of California limited its profits to 2%, in order to return money to their customers. In fact over the last three years Blue Shield of California has returned $520 million to its customers.
So Obamacare, increasing the cost of health care premiums. That means yet another one of President Obama’s famed “successes” is actually a failure. It was supposed to make things cheaper, but it is actually making them more expensive, that doesn’t look good to me.