Photo: Reuters
This week health insurers announced they will hike premiums on ObamaCare plans by double digits in 2016. Yet it’s not ObamaCare buyers who are getting gouged.
For the most part, what consumers have to pay is calculated based on their income.
They don’t pay the sticker price. It’s you — the taxpayers — who get taken to the cleaners, because you foot the bill for the subsidies paid directly to the insurers.
That makes the Supreme Court ruling in King v. Burwell, expected this month, even more consequential. It will determine the fate of these subsidies in 37 states.
Without subsidies, ObamaCare buyers in those states will have to pay the actual — and unaffordable — sticker price of ObamaCare. And you — taxpayers — will not have to fork over hundreds of billions of dollars to subsidize insurers over the next decade.
But the dirty secret is that insurers stand to lose the most from King v. Burwell.
The Affordable Care Act compels the public to buy their product, and forces taxpayers to subsidize it. What a sweetheart deal.
The giant players — United Healthcare, Cigna, Aetna, Anthem and Humana — have seen stock prices double, triple, even quadruple since the law was passed in 2010. The coming ruling threatens to put an end to their gravy train.
Democrats are predicting disaster if the court rules against President Obama.
Republicans will “rue the day” they let millions of people lose their subsidies, says Nancy Pelosi. That’s crazy talk.
No one will lose their coverage immediately, the poor will be unaffected and the biggest losers will be insurance companies.
Employers, job-seekers and taxpayers actually stand to win here.
In addition, most Republicans in Congress are inclined to compromise with the president to provide some type of financial help for insurance buyers. If the Supremes gut ObamaCare, there will be many more winners than losers. Here’s how it shakes out:
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