More than 40 House Republicans have warned the Obama administration against bailing out Obamacare insurers who have lost money on the exchanges, telling the secretary of Health and Human Services that Congress would closely scrutinize any such effort.
The Obama administration released a memoearlier this month with details about the Affordable Care Act’s so-called “risk corridor program,” which was designed to transfer funds from profitable insurers to insurers with losses.
According to the agency, the program experienced a shortfall of more than $2.5 billion in 2014, an amount so large that all of the risk corridor payments from 2015 would not cover it. Because all of the 2015 benefit year collections will be used for the 2014 shortfall, the agency anticipates that no funds will be available for the 2015 risk corridor program shortfall.
“In the event of a shortfall for the 2016 benefit year, HHS will explore other sources of funding for risk corridors payments, subject to the availability of appropriations,” the memo said. “HHS will record risk corridor payments due as an obligation of the United States government for which full payment is required.”