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October 04, 2016

Obama May Be Reversing Himself -- Or Pretending To -- On His Illegal Bailout Scheme for Obamacare

John Sexton notes news I had missed.

The insurance companies are getting out of the Obamacare markets because they're racking up big losses. Obamacare is in its death spiral.

Obama had been illegally shunting money to them -- to the tune of $3 billion -- despite the fact the law itself states that the government will not subsidize Obamacare.

Then Obama and the insurance companies seem to have struck upon the same strategy used by the EPA and others to push federal policy to the left -- encourage "stakeholders" to sue the government for the policy changes they wanted. Then the government would deliberately roll over for the suit and "settle" it by doing what the government actually wanted to do from the start, but had no Congressional authorization to do so.

See, the government, allegedly, can't do things Congress hasn't permitted -- unless the government is "sued" into doing so, and reaches a "settlement" which gives them legal cover to do what they wanted to do, but which they were not otherwise allowed to do.

This was going on with the insurance companies -- they were suing for money they claimed they were owed under Obamacare. Even though the law said they were not to be subsidized beyond a certain time-and-amount limited amount in the so-called "risk corridors."

Obama was planning to roll over for this baseless suit, and "settle" it to give them money he was otherwise legally barred from giving them.

However, perhaps he's gotten heat on this issue, as his government is now beginning to contest these easily-defeated lawsuits.

Or maybe this is just a fakeout -- people got wind of the corrupt scheme, so, like the FBI, he's going to pretend to be pursuing the proper legal course of action while deliberately tanking the effort.

PS, sorry for the late start. Insomina on Sunday night has got me all messed up as far as sleeping and waking.

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posted by Ace at 01:24 PM

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