Nonsequitur: Bailing Out Health Insurers

January 13, 2014

Have you heard of the “Reinsurance Program caps” or the “Risk Corridor Program“? Probably not. These are important components of the ACA (Obamacare). The first limits the overall costs of individual insurance to the insurer (but not the insured). In other words, tax dollars will subsidize health insurers as part of Obamacare. The second program limits overall losses for insurers. Because Obamacare mandates insurance for all, including “high risk” populations and those with pre-existing conditions, losses are basically guaranteed. Again, tax dollars will cover these losses beyond the program set limit. No wonder health insurers support Obamacare. No wonder the President isn’t talking about these two programs.

You can read details and source material here. You can see Senator Rubio’s response to these programs here.

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