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Will Taxpayers Bail Out Health Insurers?
National Center for Policy Analysis [NCPA] Link to more items from this source
Aug. 19, 2014
"If the reinsurance fund raises less revenue than expected and 2014 medical claims in the exchanges are higher than HHS anticipates, the fund will fall short of satisfying insurers' claims against losses. They will look elsewhere to be made whole. That 'elsewhere' is the risk corridors.... [R]isk corridors appear to be revenue neutral, requiring no increase in government spending of taxpayers' funds. But this is not the case, because payments are based on premiums paid, not claims incurred.... In March 2014, the administration proposed a rule that, among other things, increased taxpayers' exposure to Obamacare's risk corridors by adjusting the risk corridors formula."

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