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HHS Fears O-Care Flaws Might Bankrupt Insurers

From Jim Angle at Fox News:

Administration fears part of health care system so flawed it could bankrupt insurance companies

By Jim Angle | January 22, 2014

While the administration publicly expresses full confidence in its health care law, privately it fears one part of the system is so flawed it could bankrupt insurance companies and cripple ObamaCare itself…

To justify a no-bid contract with Accenture after firing CGI as the lead contractor, the administration released documents from the Department of Health and Human Services and the Center for Medicare and Medicaid Services that offered a rare glimpse of its worst fears, saying the problems with the website puts "the entire health insurance industry at risk" … "potentially leading to their default and disrupting continued services and coverage to consumers."

Then it went even further, saying if the problems were not fixed by mid-March, "they will result in financial harm to the government." It even added that without the fixes "the entire health care reform program is jeopardized."

In spite of the "urgent" need officials cited to keep the system from collapsing, the White House spokesman said he knew nothing about it. “I didn’t see the article I’m not aware of those statements,” Jay Carney said.

The dangers were known in early December, but later, shortly before CGI was fired, Health and Human Services Secretary Kathleen Sebelius gave Fox News an upbeat account. “I’m thrilled that we’re going to have millions of people for the first time that have health security,” she said…

But the back end still hasn’t been built, so insurers are dealing with massive confusion, missing information on who’s signed up and what subsidies they get. Sebelius insisted once again Wednesday it would all come together and insurance companies will get their money.

"I mean we will get them paid,” she said. “There is no question about that, so we are on track." For now, though, officials concede they’re relying on estimates from the insurers…

What a circus. But, honestly, what does the administration care if insurance companies go belly up? In fact, they (not too) secretly want that to happen.

This article was posted by Steve on Thursday, January 23rd, 2014. Comments are currently closed.

2 Responses to “HHS Fears O-Care Flaws Might Bankrupt Insurers”

  1. GetBackJack says:

    How clueless about economics and markets are these clowns? They’re monkeys with hand grenades, that’s how clueless.

    Anyone who’s ever participated in a new product rollout knows the first step is to Create Excitement! The second step is to price the product so low even the hesitant will give it a try .. you know, like cell phones for free so long as you signed up for a two year can’t escape Plan? Or, Chrome and.or Netscape? THEY GAVE AWAY THE PRODUCT

    Drug dealers know this. “Psst, hey kid, wanna try some? It’s free today ..”

    But no, the back alley thugs running the Obama Wild Thing Show took away the product consumers were used to and replaced it with something frightening, unusable and so costly people are shunning it as it it were the plague. And the way they’re ‘selling’ their malformed atrocity is through a website so toxic that even if you can make it ‘work’ the end result is you just dropped your personal information trousers in front of datamining criminals and said to them “No lube, please.”

    This is singularly the best possible example The Democrats have absolutely zero understanding what business is, how it works or why. And I’m talking about the simple fundamentals, not even maters of Market Economics which are more advanced.

    Like .. I dunno .. paying your suppliers on time.

    Insurance Companies? You laid down with dogs. You’ll be lucky to get up with only mange and fleas. IMHO you’re gonna have rabies and be put down.

  2. untrainable says:

    HHS fears that their actions may bankrupt the insurance industry? Oh, that’s rich. The destruction of the insurance industry WAS THE ENTIRE POINT. The problem is that the destruction wasn’t as slow and manageable as they planned. HHS’s real fear is that the people aren’t as stupid as they thought. That fear is what has forced change after change after change to “the supreme law of the land”. (You know, that law which cannot be changed).

    They’re afraid that we’re going to realize what’s going on before they’re ready. Some of us realized a long time ago (Hello my fellow S&L readers). We actually read the bill. As for the rest, they’re waking up, realizing that we were right all along, and getting angry. How much of that is because they themselves are being hurt by Obamacare, and how much is because they’re realizing that conservatives were right all along, I don’t know. Either way, the people are like the “Incredible Hulk”. You won’t like them when they’re angry.

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