Posted on 11/14/2013 5:14:21 PM PST by jimbo123
WHITE HOUSE SAYS WILL EXAMINE "RISK CORRIDOR" PROGRAM THAT SHARES RISKS OF NEW SYSTEM WITH INSURERS TO SEE IF TWEAKS NEEDED FOR 2014 DUE TO NEW FIX
(Excerpt) Read more at chicagotribune.com ...
What a train wreck!
They don’t want the media to talk about this part of today’s fix:
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.
Sincerely,
/Signed, GC, November 14, 2013/
Gary Cohen
Director
Center for Consumer Information and Insurance Oversight
corricor=corridor
corricor=corridor=bailout
Not bailout...PAYOFF!
Maybe in part. But, consider this: Keeping the old policies will drain off the relatively healthy who were supposed to support the ACA. They'll go back to the old policies. So, those will have roughly the same profitability as before, because they'll have pretty much the same risk pool. But, the new ACA-compliant policies will become a lot more expensive because a whole bunch of new losers are being enticed to buy them. So, a payoff is required to keep the whole mess revenue neutral.
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