Tuesday, January 21, 2014

Will Republicans Repeal Obamacare's Risk Corridors?

This blog’s readers are better informed than most about the (somewhat complicated) question of how health insurers will be compensated for bearing risk in ObamaCare’s health insurance exchanges.

A previous entry explained the basics “risk corridors”, which exists only for three years, 2014 through 2016, and were put in the legislation because health insurers were not confident that they could accurately price premiums in Obamacare’s early years.

On January 9, Humana, a large insurer, reported in a filing to the Securities and Exchange Commission (SEC) that the “risk mix of members enrolling through the health insurance exchanges to be more adverse than previously expected.” Corporations cannot spin filings with the SEC: The CEO and CFO can go to jail if they mislead investors. So, they have to tell us more about what is going on in the exchanges than the Administration does.

Republican politicians believe that shutting down the risk corridors will force health plans to withdraw from exchanges in 2015, contributing to ObamaCare’s ignominious end.

Likely? Not according to Senator Marco Rubio and many other Republicans, who see discouraging health insurers from participating in ObamaCare’s exchanges as a good way to finally chip away important industry support for ObamaCare.

Read the entire article at John Goodman's Health Policy Blog or The Independent Institute's Beacon blog.

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