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Marco Rubio warns of "clear signs" of impending Obamacare insurer "bailout"

From a press release:

Washington, D.C. – U.S. Senator Marco Rubio (R-FL) today commented on new evidence of the increasing likelihood of a taxpayer-funded bailout of health insurance companies under ObamaCare. This week, insurance companies began making material filings to the Securities and Exchange Commission (SEC) regarding projections for their ObamaCare risk pools.

Already, one company has disclosed that “as a result of the December 2013 federal and state regulatory changes allowing certain individuals to remain in their previously existing off-exchange health plans, the Company now expects the risk mix of members enrolling through the health insurance exchanges to be more adverse than previously expected.”

“American taxpayers should not be on the hook for bailing out health insurers, especially because ObamaCare is not working the way it was sold,” said Rubio. “Congress should take an ObamaCare bailout off the table by passing legislation I’ve introduced to repeal the so-called risk corridor provision under the law.


“If ObamaCare can only survive through a taxpayer bailout of insurers, it’s yet another clear sign that it can’t survive and isn’t worth saving,” he added.

Last year, Rubio introduced S.1726, The ObamaCare Taxpayer Bailout Prevention Act, a bill that would eliminate a provision of ObamaCare that allows for taxpayer-funded bailouts of insurance companies at the Obama Administration’s sole discretion.

Under ObamaCare’s section 1342, so-called risk corridors were established for the law’s first three years as a safety net for insurers who experience financial losses. Rubio’s bill would fully repeal the risk corridor provision, thereby ensuring that no bailout will occur under ObamaCare’s section 1342.

The big question: Is he right?

We probably won't know for another three or four months as more data comes in about the insurers' risk pools and the companies' expectations.

And, since risk corridors were built into the Affordable Care Act legislation, it's debateable about whether this is a "bailout," at least not in the sense of TARP, or the auto industry bailout. The word bailout implies an emergency spend for some unforeseen circumstance. Still, one man's bailout is another man's safety net.

Also, these payouts won't make insurers whole. So if it is a "bailout," it won't keep an insurer from going bankrupt. 

-- with Daniel Chang

Comments

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ed jenkins

Floridians again are reminded why Rubio is their most favorite current politicians and they are glad they elected him even those like this democrat primary voter who had never voted for a republican senate candidate before. Rubio points out yet another reason why Floridians despise this law and that is they there will be payments to private businesses to make up for their losses. This is yet another reason why this country is not a free market system and why it cannot achieve its economic potential.

Tally Folly

Gee that's weird Insurance companies still trying to game the system and complaining cause their profits might decrease. Sounds like Obamacare is working just fine.
Broken Record Marco.

foots

Rubio is a pure nut job should have never been elected since he tried to destroy the fl. when he was in the senate most of his money came from insurance company's now he wants more.

slothb77

"Free" healthcare, except for that huge bailout of insurance companies to resolve rising costs and decreasing revenues at the taxpayer's expense.

If Obamacare can't survive without a huge insurance company bailout, it should be left to die.

Sylvia

There's no such tghing as a free lunch..."free health care is a lie" just like everything else we hear from this president...lies, about IRS, lies about the NSA, lies about Obamacare..."you can keep your plan you can keep yuor doctor...the broken record are the lies....Obamacare is a disaster.

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