Nonsequitur: Does the Obama Administration Care More About Insurance Companies than Taxpayers?

April 22, 2016

Yes.  According to Senator Sasse (R, Nebraska):

The law [the Patient Protection and Affordable Care Act] requires the Secretary of HHS to deposit $5 billion total from 2014-2016 to Treasury through the reinsurance program. Rather than make those deposits to the Treasury, HHS has decided to prioritize payments to insurance companies.

Ignoring the clear text of the law, HHS has prioritized payments to insurance companies rather than payments to the Treasury: In 2014, the Treasury should have received $2 billion in general fund payments but received nothing even though HHS sent insurance companies the full $8 billion in reinsurance payments they requested. HHS also carried over another $1.7 billion to give insurance companies later. For 2015, HHS said they would give Treasury only $500 million of the $2 billion it should receive but insurers will receive a $7.7 billion payout ($6 billion for 2015 plus the $1.7 billion carried over from 2014).

The Senator has proposed legislation that would require HHS to comply with the law or face large budget cuts.  You can read more here.


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