Is the Obama administration going to bail out insurance companies that lose money due to ObamaCare? ObamaCare Facts by Lehrman Group Is the Obama administration going to bail out insurance companies that lose money due to ObamaCare? We’ve held the position that because the insurance carriers are required to accept all applicants, the carrier’s bottom line net income would absolutely disappear due to the high medical bills they would be instantly subject to having to pay for those new policyholders with pre-existing conditions. You could need a heart transplant, buy an ObamaCare plan from an insurance company, and immediately get on the list for your new heart. In 2011, the average cost for a heart transplant was $997,700. A person needing a heart transplant could sign up for a policy and pay maybe $400 or $500 toward monthly premiums and then receive a million dollars worth of medical care. It’s easy to see how the health insurance companies will lose money.

But hidden deep inside the ObamaCare laws (thousands of pages long) is a provision that guarantees to the health insurance companies that they will not lose money by issuing health insurance plans to very sick people. It’s the very sick people who stand to gain the most by enrolling in an ObamaCare policy. Before the 2014 plans became available, we here at Lehrman Group Health Insurance Brokers could not sell a major medical health insurance plan to people calling us who had certain health problems, like cancer, heart conditions, a stroke, diabetes, liver disease, HIV or AIDS, and many, many more conditions. Because of ObamaCare, these people are now able to purchase any plan they want, and from any insurance company they want. No health questions are asked on any applications any longer, everyone pays the same price and all pre-existing conditions are immediately covered with no waiting period. How in the world could this NOT affect health insurance company profits?

In other words, the federal government would bail out insurance companies in order to make ObamaCare work. As we learn more about this hidden profit subsidy and what it may mean to the insurance company that you choose to enroll with, we’ll post it here.

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ObamaCare Facts

Author: Tony Lehrman
Founded by Tony Lehrman in 1988, Lehrman Group serves the health insurance needs of individuals and families, small and large businesses, franchises, governments, municipalities and institutional clients throughout Arizona. Lehrman Group maintains leadership positions in the Arizona health insurance marketplace.