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senate Bill S. 123

Eliminating Risk Corridors From the ACA

Argument in favor

Risk corridors created a backdoor bailout for health insurers, who would otherwise charge higher premiums. Most taxpayers don’t even realize they exist — but that doesn’t mean they aren’t paying for it indirectly.

John's Opinion
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11/05/2015
Take this piece of bovine scatology apart piece by piece if you have to until you can fully repeal it. It was never meant to be enacted into law as the incredibly flawed piece of legislation it is, but the Dems were desperate to pass it in any form when they lost the super majority in the Senate after Kennedy's death.
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Mart's Opinion
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11/02/2015
All, and any, parts of Obamacare that fail should not be hidden.
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JonDep's Opinion
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10/12/2016
Let's repeal this section; then the rest of it
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Argument opposed

This is just another attempt to undermine the Affordable Care Act, and besides — the risk corridors are shutting down in 2017. Repealing them now would likely raise healthcare costs.

SouthernGal's Opinion
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01/22/2016
Give us single payer healthcare and stop this silly nonsense.
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CosmosFristachi's Opinion
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11/06/2015
This is just another attempt to crush the affordable care act. Stop trying to shut down a program that is helping millions of people.
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operaman's Opinion
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11/05/2015
The only way to reduce a risk corridor is to allow the ACA to fail. A bad concept in 2009 and a bad idea today.
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What is Senate Bill S. 123?

This bill would repeal Section 1342 of Affordable Care Act (ACA) to eliminate the risk corridors established by that portion of the law.

Section 1342 established risk corridors for the 2014, 2015, and 2016 calendar years. It applies to individual or small group health insurance plans. Basically, the federal government uses risk corridors to redistribute money from health insurance exchange plans that earned profits to those that lost money. If the ratio of healthcare costs billed exceeds the plan’s total annual premiums, the health insurance company is compensated by the federal government for up to 80 percent of the losses through the risk corridor.

By repealing this section of the law, the Administration — specifically the Department of Health and Human Services (HHS) — would have to request appropriations from Congress to cover any losses in the risk corridors.

Impact

Taxpayers, health insurance companies, public support or opposition to the ACA, the Department of Health and Human Services, and Congress.

Cost of Senate Bill S. 123

A CBO cost estimate is unavailable.

More Information

In-Depth: In introducing his legislation, Sen. Marco Rubio (R-FL) noted:

“Taxpayers should not have to fund massive bailouts to protect the profits of the insurance companies that helped write Obamacare, which is  why I’ve been fighting for over a year to protect taxpayers from yet another bailout that puts them on the hook for Washington’s mistakes.”

Risk corridors suffered a minor blow during the passage of ‘Cromnibus’ in December 2014, when a provision included in the law reduced the size of payments the federal government could make to health insurance companies. Sen. Rubio praised the inclusion of the risk corridor limitation in the Cromnibus, but noted that it only lasts until September 30, while saying that his new legislation is an “opportunity to take the possibility of a bailout off the table for good.”

Risk corridors are fairly common in the insurance industry, and to this point health insurance companies have been supportive of them. The CBO estimated that the risk corridors would save the federal government about $8 billion by taking $16 billion from health insurers and only distributing $8 billion back.

A national association that represents health insurance companies pushed back against the proposal to eliminate risk corridors, saying that getting rid of them would “lead to higher premiums for consumers and make it more difficult to achieve affordability.”


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Ted Eytan)

AKA

Obamacare Taxpayer Bailout Prevention Act

Official Title

A bill to prevent a taxpayer bailout of health insurance issuers.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Health, Education, Labor, and Pensions
    IntroducedJanuary 8th, 2015
    Take this piece of bovine scatology apart piece by piece if you have to until you can fully repeal it. It was never meant to be enacted into law as the incredibly flawed piece of legislation it is, but the Dems were desperate to pass it in any form when they lost the super majority in the Senate after Kennedy's death.
    Like (22)
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    Give us single payer healthcare and stop this silly nonsense.
    Like (31)
    Follow
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    This is just another attempt to crush the affordable care act. Stop trying to shut down a program that is helping millions of people.
    Like (17)
    Follow
    Share
    All, and any, parts of Obamacare that fail should not be hidden.
    Like (10)
    Follow
    Share
    The only way to reduce a risk corridor is to allow the ACA to fail. A bad concept in 2009 and a bad idea today.
    Like (7)
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    Share
    Let's repeal this section; then the rest of it
    Like (7)
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    What a desperate attempt to reward Big Pharma & Big Donors! and Transparently GREEDY TOO. disgusting GOP!
    Like (5)
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    Healthcare is a basic human right that all of us will have to use at some point in our American life. To pretend that this isn't just another GOP ploy to pander to their big pharma puppet masters is a farce. The ACA is helping millions and won't be undone and replaced by unbridled greed again. Thank you Obamacare
    Like (3)
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    Redistributing profits from those apparently successful at keeping paying customers to those not able to keep enough paying customers seems like rewarding stupidity...
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    This one step we can take to repeal this monstrosity that is Obamacare.
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    Nothing that comes from Rubio can be good for Americans.
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    No bailouts
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    Another GOP attempt to undermine Obamacare. If they were truly concerned about taxpayers funding the risk corridors this bill would have some alternate provision for doing so instead of Congress having to approve that appropriation going forward. Which would never happen, and they would use that as leverage to defund and repeal it and kick millions off of their healthcare. They have no intention of fixing it or replacing it. They are perfectly happy to let us all go without.
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    Most taxpayers don't even know these exist, yet they're still indirectly paying for them.
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    The ACA should be terminated it is a waste of my tax money and it is making life harder on doctors!
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    The ACA needs to have the bugs worked out but to do away with it and let the insurance companies take over would allow them to put the Million dollar cap back on and not cover preexisting conditions. How many people would lose coverage, go bankrupt trying to pay their Medical out of pocket or die. Think about those who are on Dialysis, have cancer, COPD etc.
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    SHUT DOW THE AFFORDABLE CARE ACT NOW !!!!!!!!!!!!!!!!!!!!!!
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    Because according to the language of the bill, Congress would be responsible for appropriation of funds to companies that suffered financial losses. This is NOT a sensible strategy.
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    I won't accept any measure but the revoke of AHC and its ending
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    The Act is a complete failure stop all funding and bailouts.
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