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“The notion that we have to take taxpayer dollars to bail out insurance companies to make ObamaCare work, that alone is a testament to why this entire law needs to be repealed,” Sen. If losses exceed the amount paid into the program, the Treasury would have to make up the difference.
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Critics, however, are concerned that the law contains no limits on how much insurers can get paid. The Congressional Budget Office scored the risk corridor program as revenue-neutral in 2010. If the costs deviate by 3 percent or more, an insurer either pays into the program or receives a payment, depending on whether its expenses are below or above the benchmark. The ACA establishes an amount that each insurer is expected to spend on medical care. Rubio’s bill would eliminate the risk corridor program, because there is a possibility that taxpayers could pick up the cost. A three-year “risk corridor” program compensates insurers that price their premiums too low. A reinsurance program, funded entirely by a tax on insurers, provides money to insurers whose enrollees exceed a certain level of medical spending.
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A budget-neutral risk adjustment program shifts money from plans with a few high-risk enrollees to those with many. The law creates three programs designed to hold down premiums and prevent insurers - which now must cover consumers without regard to pre-existing conditions, health status or gender - from going bankrupt. In this case, the problem has yet to even manifest itself, and no one knows if it will. The Obamacare Taxpayer Bailout Prevention Act is the latest of a string of GOP-sponsored bills that purport to fix problems with the ACA but would undermine the law. The bill has zero chance of becoming law, but will increase the Republican senator’s face time on talk shows, and, perhaps, enhance his tea party credentials. Marco Rubio, R-Fla., who voted to continue the government shutdown that cost taxpayers $2 billion in back pay for furloughed employees and 120,000 private-sector jobs, has filed a bill that he claims would keep the public from bailing out insurers to save the Affordable Care Act.