Posted on 10/02/2015 7:47:58 PM PDT by Brad from Tennessee
NEW YORK — A key federal program designed to cushion health insurers’ risks in the Obamacare exchanges has a massive shortfall, which could throw some insurers into financial turmoil.
Insurers requested $2.87 billion in so-called “risk corridors” payments for 2014, but will only receive $362 million, or 12.6%, said the Centers for Medicare & Medicaid Services, which oversees Obamacare.
The risk corridors program’s goal is to help insurers transition into the individual exchanges, which opened in 2014. Insurers had a tough time setting premiums since they didn’t know how sick their new customers would be.
Under the three-year program, insurers whose premiums exceeded claims pay into the fund, while their peers who didn’t charge enough premiums to cover claims could draw from it.
But too many insurers miscalculated when they set their rates for 2014.
“Insurers underestimated the riskiness of their customer base and set their premiums too low,” said Tim Jost, a health law professor at Washington and Lee University School of Law.
The shortfall could put a financial strain on some insurers, especially some smaller ones who were counting on the funds. Some firms have reported losses in their Obamacare line of business, while four health insurance cooperatives are shutting down because of financial pressures. . .
(Excerpt) Read more at wtvr.com ...
Those poor insurers.
Not much on the suckers, er, patients affected.
Not much from Obama on his ‘signature legislation’ (that’s a whopping one piece in nearly two full terms) since it passed and the cost curve bends up, not down, as it pokes all in the collective backside.
Good. I hope they all lose their azzes. Teaches them to bet on Øbongo and against the American people.
i have zero sympathy for insurers. they went along with this crap. they knew this was’going to happen and know this will all led to single’payer crap.
Such an efficient system we have here.
Another unsustainable government boondoggle that Congress will throw money at every year.
What are the chances that failed insurance companies are a design feature of Obamacare?
“Single payer” to the rescue!
I think someone told them to keep the rates low because of an upcoming election and that they would be made whole. Kind of like ‘if you like your insurance you can keep it’ made whole......
arrp won’t like it they stand to loose BILLIONS.
Not much on the suckers, er, patients affected.
the patients all went to their docs and the docs got paid. This is the way the law is designed to destroy the health insurance business and go to single payer. Force the insurers to cover high risk individuals that use the insurance to te max right away, and then the government doesn’t pay the difference in premium dollars collected and the doctor payments spent.
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