The fact that Obamacare plans are turning out not to be profitable seems to have taken Washington’s bean counters by surprise. This is best illustrated by estimates produced by the Congressional Budget Office (CBO) and the administration on the Obamacare risk corridor program. As a little background, the risk corridor program is designed to collect payments from insurers who made excess profits—as determined by the federal government—and make payments to insurers with excess losses. If the government didn’t collect enough from profitable insurers to cover the compensatory payments, taxpayers would be stuck paying for the shortfall.
However, according to CBO and the administration, taxpayers would have nothing to fear, as the payments made by profitable insurers would cover any claims made by unprofitable insurers. Specifically, CBO estimated last year that the Obamacare risk corridor program would receive about $1.7 billion in payments from profitable insurers in 2015 (source: CBO’s 2014 August baseline), while the administration estimated that profitable insurers would remit $5.5 billion (source: the president’s fiscal year 2016 budget).
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Has the CBO ever been right !
ReplyDeleteawh, such a shame. deceived once again by the master of deception. shame on you if you fell for it. duh...
ReplyDeleteI received a refund from Aetna for last year because they did not meet the payout criteria..... so someone is lying
ReplyDeleteUHC is a cluster-f of idiots. I have had dealings with them on a medical office basis, with claims, and because of that I typically tell employers to stay away from them also.
They went whole hog into the "medicaid" arena and now are crying about it but I see none of that was mentioned in the article. They are the Maryland Medicaid insurer.