Saturday, January 13

Another day, another Obamacare health-insurance "co-op" goes bankrupt


The Left/Democrats/"progressives" keep telling us that running a "business" is easy.

After all, if stupid "deplorables" in flyover country can run businesses, how hard can it be, right?

It should be even easier when politicians give your "business" $77 MILLION in what the pols amusingly call "loans"--except there's no recourse, no collateral, no provision for enforcing repayment--you know, all those standard terms all businesspeople routinely negotiate with lenders, right?

But don't worry, citizen:  We Democrat leaders assure you we have appointed, like, totally the smahtest people on the planet to be the executives of this "business."  And of course we had to offer top-dollar, six-figure salaries to get such talent, so you can be sure it'll be a rousing suc---

Well, since you asked:  the salaries of the top four execs totalled $1.5 million per year.  But totally worth it, cuz they're really really good at running such a...

Wait, what?  You say it went bankrupt after losing $20 million per year?  That's unpossible, citizen!  Cuz it should have been SO easy--what with all that sweet, sweet taxpayer money we gave loaned 'em.

Yeah, hard to figure how that could have happened, eh?

The entity we're talking about here was called "New Mexico Health Connections," and it was what the brilliant Democrats who rammed Obamacare into law (without a single Republican vote) called a "healthcare co-op."

The Dems who drafted Obamacare called these things "co-ops" to show you they were, like, totally non-profit.  Cuz profits are bad.

It failed for the same reason all the state "co-ops" have failed:  the "business model" was crap.

See, in order to get economically-ignorant Dem voters to support Obamacare, Obama and the Dems had to promise Americans that the scheme plan would cut the cost of their health-insurance.  The figure Obama himself used was that the average family would save a staggering $2500 PER YEAR!  Yay!!!!

And even better, not only did Dems promise it would lower the cost of health insurance, this brilliant bullshit scheme program would do this while giving "free" health insurance to the "30 million people who couldn't afford health insurance under the old, rapacious, cruel system run by eeeebil corporations.  Yay!!!

Some working Americans who weren't Democrats were a bit...um...skeptical.  How did the Obama gruberment believe it could give "free" health insurance to 30 million illegal aliens poor Americans while also lowering the cost of health insurance for everyone?

Simple, citizen:  By eliminating the profit motive.  And "economies of scale."  "Bending the cost curve."

That's right, citizen: See, according to Obama and the Dems, profit is the reason why America is so evil.  And corporations have to make a profit.  So if you eliminate profit--as the "co-ops" would--this immense saving would, like, totally cover the cost of giving "free health insurance" to 30 million people too poor to buy it under the eeeebil current system.

Hey, to a low-information person all of this sounds SO reasonable!  Sounds true so it must BE true, eh?

So how did that work out?

Just like folks with any knowledge of math and economics predicted:  It didn't.

The New Mexico "co-op" is the 25th to go bankrupt.  As predicted by the people who actually do know how to do math 'n stuff.

So what can we learn from this relatively tiny ($77 million-plus) disaster?
  1. When Democrats want to expand their power or win votes, they lie to get ill-considered programs passed.
  2. When you either don't analyze the cost of a proposed policy correctly, or do and simply ignore the result cuz it doesn't help your case, you get disaster every time.
  3. "When something sounds too good to be true, that's usually because it's a lie."
  4. Maybe running a *successful* business is harder than the Democrats/Leftists claim.
  5. When the top Democrat in the House says "We have to pass the bill to see what's in it," that's probably a good clue that she has no idea, but will vote for it anyway, cuz...Democrats.
  6. Maybe next time Dems propose some program that seems to give something for nothing, voters will listen to people who actually know how to run a business and do honest math, instead of some pencil-neck PhD named Jonathan Gruber, who bragged that they were "only able to pass the thing because of the stupidity of the American people."
Normally I'd get a kick out of exposing the utter dishonesty, stupidity and incompetence of the Left, their Democrat allies and their Lying Media.  But in this case the harm done to the economy and the huge increase in national debt was so great that it takes a lot of the fun away.

Hopefully the billions in bonuses and hundreds of billions in higher stock values will take some of the sting out.  And of course you know who to thank for those things, right?

Yep:  Barack Hussein Obama, who set all this up with his faaabulous policies.  But don't worry, citizen:  our media will ensure that no one will make the mistake of giving that dumb ol' Trump guy any credit.  Cuz he called some shithole third-world countries shitholes. 

The nerve of that guy!

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