They're cutting off one finger at a time in hostage negotiations
by digby
If you thought that Obamacare was a sacred item for Democrats in any budget negotiations, think again:
When Congress struck a deal to avert the fiscal cliff, it also dealt a quiet blow to President Obama’s health overhaul: The new law killed a multibillion-dollar program meant to boost health insurance competition by funding nonprofit health plans.
The decision to end funding for the Consumer Operated and Oriented Plans has left as many as 40 start-ups vying for federal dollars in limbo. Some are considering legal action against the Obama administration, after many spent upwards of $100,000 preparing their applications.
[...]
The Consumer Operated and Oriented Plan, or CO-OP, program was aimed at spending as much as $6 billion to help launch nonprofit health insurance carriers. It came into favor with Democrats when it became clear that a government-run plan, known as the public option, could not gain enough political support.
Why did they do it? Nobody knows. It seems to have been part of the Biden McConnell agreement. But I'm sure it helped that this was the last thread of hope for public option proponents who had thought that these non-profits could end up operating as it might have. It had to feel good to drive a stake into that idea once and for all.I'm sure Biden and McConnell shared a toast afterward.
But apparently the lamest GOP hissy fit on record had more of an impact than anyone could imagined:
In theory, nonprofit health plans could offer lower premiums, which would put pressure on private insurance companies to cut their rates. But over the past three years, the program has come under congressional investigation as Republicans questioned whether the nonprofit plans would make good on their loans, or go belly-up like the solar panel company Solyndra. That manufacturer borrowed more than a half-billion in federal loans, only to go bankrupt in 2011.
Jayzuz is there any silly tantrum these people don't get rewarded for?
And no, there are obviously no programs that are off limits for budget cuts. None.
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