- Fri Nov 20, 2015 4:19 pm
#64796
The Department of Health and Human Services reassured private insurers on Thursday that they'll be able to recover losses from participating in Obamacare by claiming it was an "obligation" of the U.S. government to bail them out. For the 2014 benefit year, insurers losing more than expected asked for $2.87 billion in government payments through the risk corridors program.Damn wonder why no body saw that coming? :shock: Obama said it wouldn't happen, so I'm completely confused as to how and why it's happening, the President of the United States gave his word.
In a statement issued Thursday, the same day that the nation's largest insurer, UnitedHealth announced it may exit Obamacare due to mounting losses, Tavenner said, "We've been very clear with the administration about the serious challenges facing consumers and health plans in this Exchange market. Most recently, nearly 800,000 Americans have faced coverage disruptions as a result of the significant and unexpected shortfall with the risk corridors program. When health plans cannot rely on the government to meet its obligations, individuals and families are harmed as a result. The administration must act to ensure this program works as intended and consumers are protected."
HHS said it, would "explore other sources of funding for risk corridors payments, subject to the availability of appropriations. This includes working with Congress on the necessary funding for outstanding risk corridors payments."
Risk corridor payments for 2016 won't be due until mid-2017, and by that point, it will be an issue for a future Congress and future president. Nothing that a previous administration's HHS said in 2015 will really matter.
