Sevigny’s proposal is not reinsurance as that term has been historically understood.
Reinsurance does not require government intervention. It is a voluntary transaction between private insurers. An insurance company insures part of the policies it has written with one or more other insurance companies. The insurance company that wrote the insurance is protecting itself against claims being higher than anticipated. The insurance companies reinsuring the policies are essentially betting that claims will not be higher than anticipated.
What Sevigny is talking about bears no resemblance to true reinsurance. He wants to force insurance companies to pay into a government “pool of money” from which he will make payments to Obamacare insurers to cover their losses from Obamacare.
Sevigny’s faux-reinsurance proposal is wildly popular among the Democrats because it moves us closer to their ultimate goal – European-style single-payer.
Sevigny’s faux-reinsurance socializes –that is, hides– the true cost of Obamacare. Insurance companies sell Obamacare insurance to certain demographics at a loss, then Sevigny covers these losses from the “pool of money.” Of course, the “assessments” to fill the “pool of money” are funded by charging other insureds higher-than-necessary premiums.
RINOpublican Senators Collins, McCain and Murkowski were barely done stabbing the voters who gave the GOP control of the federal government in the back when Senate Minority Leader Cryin Chuck Schumer was bloviatweeting about the need for a “bipartisan” “fix” for the mess that Obamacare has made of healthcare:Schumer’s fixes for Obamacare, however, would move us closer to a “single-payer,” that is Wetsern-European style, government-run healthcare. Continue reading →
So based on what the Associated Press has reported, I have to say that Sununu’s plan to replace Obamacare is just more of the same.
In other words, Sununu’s plan, again based on the Associated Press reporting, is to replace Obamacare with Sununucare. More particularly “design[ing] a New Hampshire system for New Hampshire citizens” means shifting powers from the federal bureaucrats and regulators to State bureaucrats and regulators. Continue reading →