Tag Archives: risk corridors

The Lawsuit Boehner Should Bring

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The House has authorized the Speaker to sue the Administration for overreaching in its Obamacare implementation. He should sue over its corporate welfare provisions. [Credit: rightspeak.net]

The House has autho­rized the Speak­er to sue the Admin­is­tra­tion for over­reach­ing in its Oba­macare imple­men­ta­tion. He should sue over its cor­po­rate wel­fare pro­vi­sions. [Cred­it: rightspeak.net]

Hi Chet –
After speak­ing at length today with Jeanne and our oth­er pol­i­cy folks, I do not think I have any more to add. They seem to have giv­en you 80 per­cent of what you request­ed and I am not in a posi­tion to sec­ond guess there [sic] analy­sis.
Sin­cere­ly,
Valerie

“Valerie” would be Valerie Jar­rett, one of Pres­i­dent Obama’s clos­est advis­ers. “Chet” would be Chet Bur­rell, CEO of Care­First Blue Cross. In the April 15 email, Jar­rett advised the insur­ance exec­u­tive that he would have to live with 80 per­cent of what his indus­try asked the White House for.

A month lat­er, the Admin­is­tra­tion relent­ed and gave the indus­try 100 per­cent of what it asked for – a reg­u­la­tion that will involve the give­away of an addi­tion­al $1 bil­lion in tax­pay­er funds to insur­ers par­tic­i­pat­ing in the Oba­macare exchanges.

If the Speak­er intends to file a law­suit against the Admin­is­tra­tion for abuse of pow­er, as a res­o­lu­tion adopt­ed last evening by the House autho­rizes him to do, he should sue over this. Con­tin­ue read­ing →

Obamacare By The Numbers: Exchange Enrollment

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Some Obamacare supporters claim that 10 million uninsured Americans have so far gained coverage thanks to the new law. Are they right? (Credit: AP)

Some Oba­macare sup­port­ers claim that 10 mil­lion unin­sured Amer­i­cans have so far gained cov­er­age thanks to the new law. Are they right? (Cred­it: AP)

“Let’s look at the bot­tom line. The bot­tom line is this: 10 mil­lion Amer­i­cans have health insur­ance today who would not have had it with­out the Afford­able Care Act. Ten mil­lion.”  — Sen. Richard Durbin (D‑IL)

Oba­macare crit­ics have tak­en con­sid­er­able plea­sure in point­ing out the law’s short­com­ings — can­celed poli­cies, high­er pre­mi­ums and cost-shar­ing, nar­row net­works — the list goes on.

Now that the web­site’s worst prob­lems have been resolved and enroll­ment num­bers look more respectable, you can hard­ly blame the law’s embat­tled advo­cates for using favor­able num­bers a bit loose­ly. After all, if those who find fault with the law have some­times behaved irre­spon­si­bly, why should­n’t its defend­ers stretch the truth a bit? Con­tin­ue read­ing →

Obamacare: Should Taxpayers Take the Risk of Subsidies?

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I testified on Obamacare yesterday before the House Oversight and Government Reform Committee.

I tes­ti­fied on Oba­macare yes­ter­day before the House Over­sight and Gov­ern­ment Reform Committee.

I tes­ti­fied yes­ter­day before the House Over­sight and Gov­ern­ment Reform Com­mit­tee on a some­what tech­ni­cal pro­vi­sion of Oba­macare.  The pro­vi­sion estab­lish­es “risk cor­ri­dors,” which lim­it prof­its and loss­es of insur­ers that sell through the exchanges.  Plans that make “excess prof­its” must pay into the risk cor­ri­dor fund; those that suf­fer “excess loss­es” receive mon­ey from that fund.   Con­tin­ue read­ing →

Obamacare’s Comfort Food For The Insurance Industry

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The President huddled with health insurance executives last month, part of a White House effort to assure them that the government has their back. (Credit: LA Times)

The Pres­i­dent hud­dled with health insur­ance exec­u­tives last month, part of a White House effort to assure them that the gov­ern­ment has their back. (Cred­it: LA Times)

The healthcare.gov web­site now works to the Admin­is­tra­tion’s sat­is­fac­tion.  While only 30 per­cent of users could enroll when the site first launched, it’s now up to 80 per­cent.

Frus­trat­ing one in five poten­tial cus­tomers, evi­dent­ly the gold stan­dard for the White House, is viewed less favor­ably by pri­vate insur­ers.  It’s among the rea­sons that the health care law is caus­ing such anx­i­ety in the C‑suites of insur­ance com­pa­nies that are hop­ing to prof­it by sell­ing poli­cies through the exchanges. Which is why White House meet­ings with insur­ance exec­u­tives are hap­pen­ing more fre­quent­ly than Cab­i­net meet­ings. Con­tin­ue read­ing →