Monday, May 4, 2015

Obamacare's Risk Corridors Are Back, And Bigger and Badder Than Ever!

Last December, I discussed with some relief that Congress had stopped the unlimited taxpayer liability of Obamacare’s risk corridors, which protect profits for health insurers by transferring money from insurers with extra profits to those whose profits from Obamacare are less than expected.

The CROmnibus, which funded the government for 2015, put a guardrail around the risk corridors by legislating that any payments beyond budget neutrality would have to be appropriated. (That is, if extra profitable insurers earned $100 “too much” and losing insurers lost $200 “too much”, the winners could pay the losers $100, but the U.S. Treasury could not just make up the balance without Congress appropriating the funds.)

Read the entire entry at NCPA's Health Policy Blog.

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