Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) announced his co-sponsorship of the ObamaCare Taxpayer Bailout Prevention Act (H.R.3541), legislation that prevents taxpayer bailouts of health insurance companies.
Rep. Gosar Co-sponsors Bill to Prevent ObamaCare Bailouts 'No More Taxpayer Bailouts’
Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) announced his co-sponsorship of the ObamaCare Taxpayer Bailout Prevention Act (H.R.3541), legislation that prevents taxpayer bailouts of health insurance companies. This legislation repeals the section of the Patient Protection and Affordable Care Act that grants the Secretary of Health and Human Services unilateral authority to establish a risk corridor program, which could result in taxpayer-funded bailouts of insurance companies.
Rep. Gosar said, “No more taxpayer bailouts. Hardworking taxpayers shouldn’t be on the hook for ObamaCare’s failures. We simply can’t allow this Administration to pass bad policy and then bail itself out to avoid admitting that ObamaCare is an unworkable disaster. I urge my colleagues to act swiftly to pass this bill.”
Sen. Marco Rubio introduced companion legislation in the Senate, S.1726, where it was referred to the Committee on Health, Education, Labor, and Pensions.
BACKGROUND:
As currently written, the Patient Protection and Affordable Care Act (PPACA) grants the Administration authority to cover insurers for their losses. Section 1342 of PPACA states that the Secretary of the Department of Health & Human Services “shall establish and administer a program of risk corridors.” A final rule from the Centers for Medicare & Medicaid Services (CMS) further clarifies: “Regardless of the balance of payments and receipts, HHS will remit payments as required under section 1342 of the Affordable Care Act.”
Additionally, from the language in a letter from CMS to state insurance commissioners, the Administration seems ready to use this authority: “Though this transitional policy was not anticipated by health insurance issuers when setting rates for 2014, the risk corridor program should help ameliorate unanticipated changes in premium revenue. We intend to explore ways to modify the risk corridor program final rules to provide additional assistance.”
