Kirsters Baish| The story of how Obamacare was pushed through Congress in such a secretive way is old news by now. But, more and more details are emerging all the time about how horrible Obamacare has been for America. I can almost guarantee that you didn’t know just how sketchy the scam that former President Barack Obama put in place to keep his healthcare system going truly is.
President Trump doesn’t seem to have a problem diving headfirst into taking apart Obamacare once and for all. After the completely failure of Congressional Republicans to get the repeal on Obamacare, even though they had five years to figure out a good repeal plan, President Trump has made the decision to make his attack through law and order. Just last week, Trump began working on weakening the law, which pushed CNN’s Anderson Cooper to say “Never have we seen a president so seemingly bent on reversing, negating, even obliterating his predecessor’s signature accomplishments.” The only problem with Cooper’s statement is that I wouldn’t exactly call Obamacare an accomplishment.
So far in his quest to destroy Obamacare, President Trump has done the following:
- Cut back funding for a program that was specifically created to help individuals navigate the Obamacare insurance marketplace by 90 percent. He also signed an executive order that would allow for groups to buy insurances against state lines.
- As of last Thursday, he has stopped all federal funding for Obamacare subsidies. Since around half of the consumers who buy health insurance through Obamacare qualify for these subsidies, it weakens the program’s sustainability greatly.
Because of President Trump’s cuts to the many Obamacare programs, the Kaiser Family Foundation has reported that more than 70 percent of regional programs and 55 percent of statewide navigators believe that there will be a huge rollback of programs in rural areas due to the administration’s funding cuts. 89 percent of navigators believe that they will have to fire staff due to the cuts.
While it isn’t exactly “repeal and replace,” it’s definitely a good start. Trump is serious about his plans to get rid of Obamacare once and for all, but there is still a huge source of funding for the law that Barack Obama put into place with such deception. There is one last piece of unfinished business from the past financial crisis, which is the status of mortgage big men Fannie Mae and Freddie Mac.
The two corporations needed humongous bailouts in 2008, and then they were placed under control of the United States Treasury. In the beginning, they both agreed that they would pay the Treasury a specific dividend every year that would be equivalent to 10 percent of the bailout funds that they received. The Treasury was also issued warrants which allowed them the equivalent of a 79.9 percent equity stake in both corporations.
Both corporations recovered much more quickly than expected, and they became profitable again. Because of this, the Obama administration actually got better returns taking the profits of Fannie and Freddie instead.
Since the year 2012, every single quarter, both corporations have been giving 100 percent of their profits to the Treasury. Even though American taxpayers are the ones who bailed out Fannie and Freddie for $187.5 billion, the Federal government are the ones who have been paid back $275.8 billion so far. This is almost $90 billion in excess of that same figure.
You’re probably wondering what the funds have been used for. Well, our current Treasury Secretary Steve Mnuchin has stated exactly what many people have feared, that the funds were being put right into Obamacare.
There is a huge issue with this set-up. Because all of their profits were confiscated, Fannie and Freddie cannot hold any cash reserves on their own at this point in time. That means, every quarter that the corporations are not making a profit, the American taxpayer will be the one making up the difference. It is completely ridiculous and unfair to have innocent Americans paying for the bailout.
I truly hope that President Trump cuts off the money coming from Fannie and Freddie to the Treasury as soon as possible. He can end Obamacare funding and in doing so, protect the American taxpayer.
If you’re wondering about the 79.9 percent stake that the Feds will continue to have in both companies, the RNC is estimating that the Treasury would be able to generate $100 billion from selling that stake back to the public.
President Trump must act soon in order to fix this giant issue.