Tag Archives: single payer


As bad as Obamacare appears to be, it is even worse than it seems.  Passage of the Affordable Care Act was not the completion of a plan, it was the first step, a Trojan horse.  Read what Rick Unger had to say in Forbes on Dec 2, 2011.  Mr. Unger is not a Tea Party activist lamenting the coming end of patient controlled health care and Obama’s false promise of Choice.  Unger is a firm supporter of Obamacare.  He is not lamenting the end of private health care insurance; he is confirming and applauding it.

This is the true ‘bomb’ contained in Obamacare and the one item that will have more impact on the future of how medical care is paid for in this country than anything we’ve seen in quite some time.  Indeed, it is this aspect of the law that represents the true ‘death panel’ found in Obamacare—but not one that is going to lead to the death of American consumers. Rather, the medical loss ratio will, ultimately, lead to the death of large parts of the private, for-profit health insurance industry.

Why? Because there is absolutely no way for-profit health insurers are going to be able to learn how to get by and still make a profit while being forced to spend at least 80 percent of their receipts providing their customers with the coverage for which they paid.

In other words, the new law caps insurance company gross profit from insurance operations at 20%.  What a company manages to net out of that is up to them.  Unger acknowledges that it may not be enough to survive and he cries halleluiah to that!  The end of private insurance.

Today, [Dec 2, 2011] the Department of Health & Human Services issues the rules of what insurer expenditures will—and will not—qualify as a medical expense for purposes of meeting the requirement.

Not a chance-and they know it. Indeed, we are already seeing the parent companies who own these insurance operations fleeing into other types of investments. They know what we should all know – we are now on an inescapable path to a single-payer system for most Americans and thank goodness for it.

Note that it is the Department of Health & Human Services that sets the rules.  That means HHS can change the rules if their objective is not being met.  An act of Congress is not required.  SOTUS says Obamacare is a tax.  Taxation without representation, anyone?

If you thought that the Obama Administration chickened out on pushing the nation in the direction of universal health care for everyone, today is the day you begin to understand that the reality is quite the contrary. ~ Unger

As you heard Barney Frank and Barack Obama say in the video, single payer (government only) coverage is the ultimate goal.  As you will learn if you follow our upcoming coverage of the book Radical-In-Chief, the progressive’s strategy is incremental stealth.  If single payer is the goal, debate over percentages is pointless.  No private enterprise that needs a profit to survive can compete with a government that doesn’t.

The only way to stop government-only health care is to stop Barack Obama.  Come November, don’t let you vote go to waste.


In our Oct 12th post, Obamacare is Working as Planned, we pointed out that the President’s objective is the elimination of private insurance altogether. We included a video of Barack Obama declaring very clearly that single player is the goal. Single means “only” and the “only payer” is of course the federal government. The complete elimination of private health insurance companies is his goal.

One thing the President knows about economics is that he can destroy an industry by raising its costs and taking away its customers. It’s called the double whammy. The Associated Press issued this progress report:

AP WASHINGTON – Oct 24, 2010
The new health care law wasn’t supposed to undercut employer plans that have provided most people in the U.S. with coverage for generations.

But last week a leading manufacturer told workers their costs will jump partly because of the law. Also, a Democratic governor laid out a scheme for employers to get out of health care by shifting workers into taxpayer-subsidized insurance markets that open in 2014.

While it’s too early to proclaim the demise of job-based coverage, corporate number crunchers are looking at options that could lead to major changes.

“The economics of dropping existing coverage is about to become very attractive to many employers, both public and private,” said Gov. Phil Bredesen, D-Tenn.

You must forgive the Associated Press for saying “it wasn’t supposed to”. The AP editors don’t read Random Thots and thus are not fully informed. McDonalds and AT&T were first to say, that due to the new law, they would need to drop or seriously curtail health insurance for employees in order to remain viable and competitive. Senator Waxman threatened to haul the executives into Washington for an investigative hearing by the Senator’s committee. Ultimately a deal was cut and these two companies have exemption from the law.

What’s next? If two are exempted, why not two hundred? or two thousand? That will never do, so more exemptions are unlikely. That means employers will drop the insurance, pay the additional tax (called a “fine” for legal reasons) and health care coverage will default to the government. No major company wants to go next. But one will, and then an avalanche will follow.

In his promise to the labor union membership, Obama said “It won’t happen overnight. It may take 10 years or more.” It looks like the plan is running ahead of schedule.


In Connecticut, Aetna Insurance petitioned the State regulators to allow a 24.7% rate increase to cover the increased cost of providing coverage under Obamacare. They were granted a 14.2% increase for large group plans and an 18% increase for small group plans. Similar rate hikes are being granted in other states. Facing this magnitude of cost increase several companies have announced they will no longer be providing health coverage for their workers. These employees will end up on the government plan by default. This is Obamacare working as planned.

The squeeze is on. Insurers need to raise prices for survival, employers need to control costs to remain internationally competitive. The pragmatic solution for business is to default to single payer government coverage. For insurance companies the path to survival is to diversify away from providing health care coverage. In time, at the end of the struggle the government plan will be the only man left standing. Pelosi, et al, knew this consequence was built into the bill. Whatever else was there didn’t much matter.