Conservatives to Ryan and McConnell: No Obamacare Bailout
Today, conservative leaders sent a letter to House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell urging them to continue the policy contained in recent appropriations bills restricting the use of Obamacare’s “Risk Corridor” program:
As you begin negotiations over legislation to continue government funding past December 11, 2015, we the undersigned individuals and organizations urge you to continue the policy contained in recent appropriations bills restricting the use of Obamacare’s “Risk Corridor” program.
Many of us signed on to a letter last year describing the Risk Corridor program (Sec. 1342 of the Patient Protection and Affordable Care Act, better known as “Obamacare”) in detail and outlining why we believed it was important to restrict its ability to serve as a “taxpayer bailout” for Obamacare participating insurance companies. Fortunately, Congress was able to insert such language into the last omnibus appropriations act (specifically Division G, Title II, Sec. 227 of P.L. 113-235).
In last year’s letter, we pointed out that the experience of insurers in the new exchanges would likely lead to them demanding much more in returns from the program than they were putting into it. That prediction has turned out to be true. On October 1, the Department of Health and Human Services (HHS) announced that they would only be able to pay out $362 million of the requested $2.9 billion, or just 12.6%, of funds that Obamacare-participating insurers had requested. Absent the Sec. 227 language mentioned above, HHS may very well have simply filtered the difference of $2.538 billion from hardworking taxpayers to bailout insurers for their poor business decisions.
You can read the full letter here.