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Obamacare Trojan Horse: Is White House Muzzling Insurance Companies?

Posted by Larry Doyle on October 31, 2013 9:30 AM |

Classics scholars are familiar with Virgil’s legendary warning, “Timeo Danaos et dona ferentes,” i.e. “Beware of Greeks bearing gifts.

Just as the Greeks on the mainland would have been well served to be leery of what the Trojans were hiding in their “gift,” the American public may also want to be very careful as to what lies deeply within the administration’s newly released horse, aka Obamacare.

If transparency is indeed the great disinfectant, then there is seemingly a lot that might smell in the Obamacare stable. Put on the heavy boots and let’s navigate.

Our President and his minions would like the American public to believe that it is “only” 5 per cent of the population that are experiencing the cancellation of “junk” insurance policies purchased on the individual market. They make that arrogant assertion contrary to the endless number of personal stories indicating otherwise. (e.g. Los Angeles Times commentary Obamacare: Unfair to the Young Middle Class, Punished Enough Already)

The administration maintains that if not for this seemingly small percentage of people, then we might believe the President should still be regarded as genuine, honest, and honorable in stating, “If you like your health care plan, you can keep it. Period.”

Do you hear a heavy naying sound in the background?

Let’s dig a little deeper through the dung to reveal that it is not merely 15 million people who are poised to have or already have had their policies cancelled.

Forbes provides meaningful transparency on the Obamacare Trojan Horse (now we understand what Ms. Pelosi meant in stating, “We have to pass the bill so you can find out what is in it”) in writing, Obama Officials in 2010: 93 Million Americans Will Be Unable To Keep Their Health Care Plans Under Obamacare:

On Tuesday, White House spokesman Jay Carney attempted to minimize the disruption issue, arguing that it only affected people who buy insurance on their own. “That’s the universe we’re talking about, 5 percent of the population,” said Carney. “In some of the coverage of this issue in the last several days, you would think that you were talking about 75 percent or 80 percent or 60 percent of the American population.” (5 percent of the population happens to be 15 million people, no small number, but let’s leave that aside.)

But Carney’s dismissal of the media’s concerns was wrong, on several fronts. Contrary to the reporting of NBC, the administration’s commentary in the Federal Register did not only refer to the individual market, but also the market for employer-sponsored health insurance.

Section 1251 of the Affordable Care Act contains what’s called a “grandfather” provision that, in theory, allows people to keep their existing plans if they like them. But subsequent regulations from the Obama administration interpreted that provision so narrowly as to prevent most plans from gaining this protection.

Subsequent regulations? As in the administration changed the legislation ex post facto? Sniff, sniff, sniff . . . digging deeper through the manure we uncover:

“The Departments’ mid-range estimate is that 66 percent of small employer plans and 45 percent of large employer plans will relinquish their grandfather status by the end of 2013,” wrote the administration on page 34552. All in all, more than half of employer-sponsored plans will lose their “grandfather status” and get canceled. According to the Congressional Budget Office, 156 million Americans—more than half the population—was covered by employer-sponsored insurance in 2013.

How many people are exposed to these problems? 60 percent of Americans have private-sector health insurance—precisely the number that Jay Carney dismissed. As to the number of people facing cancellations, 51 percent of the employer-based market plus 53.5 percent of the non-group market (the middle of the administration’s range) amounts to 93 million Americans.

How might the White House keep under muzzle the fact that Obama’s signature legislation was changed after the fact, and that 93 millions will likely have their healthcare plans cancelled? Compel the insurance companies to STFU.

Is that right? Listen to this 3-minute delivery on CNN to learn more,

How much do you trust and believe what is being put forth by the White House and others on this largest gift horse running wild across the American economic landscape? I mean regardless of your political leaning, who does not believe that President Obama intentionally misrepresented — er, lied — to the American public in his oft-referenced statement about keeping your plan.

The real question now is not did Obama lie in the past, but did he lie once again just yesterday in stating that it is only a small percentage of people who would have their plans cancelled.

Yes indeed, transparency is the great disinfectant.

Navigate accordingly.

I thank our regular reader Ray who linked to video clip yesterday in his comment.

Larry Doyle

Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog to view the embedded video clip and to comment on this piece of ‘sense on cents.’

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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

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