Obamacare Tax Merry-Go-Round
Get a load of how Obamacare health insurance premium taxes work. According to Medicaid Health Plans of America: “This situation results in the federal government taxing itself and taxing state governments to fund the higher Medicaid managed care payments required to fund the ACA health insurer fee”.
It look me a few times to get my head around that. What it means is that Obamacare levies a premium tax on private health plans — including those to contract to provide Medicaid coverage. So, the federal and state governments, which are Medicaid’s payers, pay those taxes. USA Today has summarized what the taxes will cost in some large states:
- Florida anticipates the tax will cost $100 million, with the state picking up $40 million and the federal government, $60 million.
- Texas estimates the tax at $220 million, with the state paying $90 million and the federal government, $130 million.
- Tennessee anticipates it will owe $160 million, with the state paying $50 million and the federal government, $110 million.
- California budgeted $88 million, with the state paying $40 million and the federal government, $48 million.
- Georgia estimates the tax on its plans at $90 million, with the state paying $29 million and the federal government, $61 million.
- Pennsylvania predicts the tax will cost $139 million, with the state paying $64 million and the federal government, $75 million.
- Louisiana estimates the tax will cost $27 million, with the state paying $10 million and the federal government, $17 million.
John, $40 million for Florida is nothing. I think we should get non-profit Blue Cross of Florida to pay for it. Last year both Michigan and Florida Blue Cross reorganized into non-profit mutual companies. Blue Cross of Michigan offered $100 million to the State but the State Michigan settled for $1.5 billion. In contrast, Blue Cross of Florida paid — ZERO. That’s not fair.
Then the stupid Blue Cross of Florida CEO said, “We can take some of our reserves and move them into our for-profit businesses.” How stupid is that? If I was in charge of Blue Cross of Florida, which I’m not, I would haul that CEO into my office and ask, “Have you lost your MIND? That was suppose to be our secret you FRUITCAKE.” Then just like Donald Trump I would say, “You’re FIRED!”
Florida doesn’t want to be like Nevada who didn’t ask for their piece of the pie and Blue Cross of Colorado took over and removed the reserves out of state and the money was gone.
California got $3.2 billion from Blue Cross there but you have to ask. Even if Florida got just $1.5 billion like Michigan that is a whole lot bigger than a measly $40 million. See why us at TIME call the Blue Crosses in each state – Local Yocals?
I blame Rick Scott and those darn Blue Cross BRIBES. Blue Cross and Rick Scott call them campaign contributions but we all know better. We we not born yesterday you know.
I forgot to put proof about Blue Cross CEO so here you go, from the horse’s mouth, “he led a reorganization last year that shifted $1.6 billion of Florida Blue’s $2.8-billion surplus to a new entity that can deploy the money in acquisitions Of [for-profit, higher-margin businesses] and entrepreneurial ventures.”
In the course of getting state approval for Florida Blue to reorganize, Geraghty’s 2012 $6.8-million compensation (including $1.3 million in relocation expenses) came to light. Geraghty says Florida Blue’s board, comprised entirely of independent directors, sets his compensation with advice from consultants. He says $975,000 is base salary and the rest depends on whether he achieves company goals.
It is in Medicaid that Geraghty’s influence is most evident beyond Florida Blue’s campus. As originally passed, the law forced states to expand Medicaid, but the U.S. Supreme Court rejected that mandate. Gov. Rick Scott [initially refused] to voluntarily expand Medicaid, foregoing An estimated $51 billion in federal dollars over 10 years.
http://digital.floridatrend.com/article/Pat+Geraghty%3A+Florida+Blue+CEO+/1583742/187967/article.html
Sometimes you have to go real slow for people. So here you go an explanation:
Stinging the Blues
When Blue Cross Blue Shield plans convert to for-profit status, states are entitled to big money. But they have to ask for it.
BY ALAN GREENBLATT | JULY 2001
http://www.governing.com/topics/finance/Stinging-Blues.html
Very interesting, Ron!