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A Republican bill to allow insurance companies to continue to offer their old policies is gaining Democratic support.
This bill once again proves that the Republicans are the stupid party. This bill is a travesty. It will not solve any problems, but will transfer the disaster to the federal budget. Under Obamacare the insurance companies can’t afford those old health plans since Obamacare now requires them to give insurance to everyone, even the sick who do not have insurance. Thus, they need to charge more to pay for those sick customers. If the old plans are forced on them, they will need significant subsidies from somewhere to stay in business, and this bill gives it to them out of the U.S. treasury. Moreover, the bill only adds more complexity and confusion to the whole mess.
If the Republicans had any brains, they would simply demand repeal at this moment. Repeal is the only real solution, so that we can start over and deal intelligently with the problems of the health insurance industry. It is also the smart political move. If the Democrats refuse to cooperate, they once again will be forced to endorse Obamacare as it collapses. If they go along, the Republicans get what the country needs, while winning politically.
And there’s this: It’s a trap!