Obamacare’s Trillion-Dollar Gift to Big Insurance
The House Oversight Committee is holding a hearing this morning on the IRS’ massive role in implementing Obamacare – and the hearing already includes a devastating admission from the Administration. In his prepared testimony to the Committee discussing the law’s subsidies for health insurance, IRS Commissioner Doug Shulman admits that “the advance payments of the credit [i.e., subsidy] will be paid directly to the insurer, and cannot be accessed directly by the taxpayer.” In its updated analysis of Obamacare last week, the Congressional Budget Office indicated that these subsidies will exceed $1 trillion – meaning Obamacare provides a whopping thirteen-figure gift directly to insurers.
Not only do these developments provide a big wet kiss to Big Insurance, but they also violate candidate Obama’s campaign promises made four years ago. An Obama campaign ad derided Senator McCain’s proposal to subsidize insurance through tax credits: “That tax credit? McCain’s own Web site said it goes straight to the insurance companies, not to you, leaving you on your own…” Likewise, in a campaign speech, candidate Obama vilified Senator McCain for this policy: “But the new tax credit [McCain’s] proposing? That wouldn’t go to you. It would go directly to your insurance company – not your bank account.”
During his campaign, then-Senator Obama sold himself as a candidate full of hope and change. Now, when it comes to Obamacare’s giveaways to Big Insurance, he has changed his position – and hopes you won’t notice. It’s exactly the kind of “reform” Americans don’t need.