Insurance companies were struggling to make the numbers work to where they could remain profitable so the Obama Administration told them they'd have their backs and shore up losses should they occur. Well, guess what, the Federal Government is being sued for over $11 billion dollars for losses incurred by some insurance companies.
One of the major problems these insurance companies faced is in reference to pre-existing conditions. People didn't worry about the individual mandate figuring it was less costly to pay a penalty than it was to get medical insurance and it was a great idea on their part especially since our government didn't tax them like they were supposed to do. Why? Because they didn't want the bad press from U.S. citizens about them being angry at Obama Care for taking their money.
So people without insurance waited until they actually had a serious medical problem before buying the insurance. This kills insurance companies because they need healthy people to pay into the system not people coming in last minute who hadn't paid anything yet getting something huge in return.
What makes it worse, is that I'm not talking about minor health problems, I'm talking about big ones such as cancer. Insurance companies get hit with bills over $100,000 for a customer who has contributed nothing . There's no way this is an effective business model. This is why so many insurance companies opted out of Obama Care. There are places in the U.S. where Obama Care has no insurance programs to offer.
So the time has come to pay the piper. The Obama Administration, behind closed doors I might add, promised to shore up losses for these companies and it appears that taxpayers are going to be on the hook again. The fact of the matter is, these insurance companies aren't suing the Federal Government, they're suing you and me and I find this disgusting. Not that it's their fault, they are just collecting on promises made. The disgusting part is the game the Obama Administration played in getting the ACA approved. They told everyone what they wanted to hear in order to pass the legislation. But at the end of the day, I guess it's politics as usual.