GAO: Obama Can’t Bail Out Insurers Without Congress

The insurance industry’s losses through President Obama’s health care law cannot be recouped with a bailout unless the U.S. Congress approves it, according to a release from the Government Accountability Office.

The Washington Examiner reported that the legal ruling, which was made Tuesday, could end up provoking a show down between the White House and Congressional Republicans over Obamacare.

At issue is the “risk corridors” program, which aims to stabilize the insurance market on the new health insurance exchanges during the early years of Obamacare. Because the law requires insurers to offer coverage to those with pre-existing conditions and limits how much insurers can charge older and sicker patients, insurers who join the exchanges risk getting stuck with a disproportionate number of older and sicker beneficiaries, translating into losses that could discourage companies from participating.

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