It's only tax money...

[Gilligan]

...not real money. So the supply is unlimited, of course.

http://news.investors.com/politics-obamacare/100114-719719-obamacare-risk-corridors-a-taxpayer-bailout-for-insurers.htm

 

[tommyjo]

...not real money. So the supply is unlimited, of course.

http://news.investors.com/politics-obamacare/100114-719719-obamacare-risk-corridors-a-taxpayer-bailout-for-insurers.htm

Oh lookey another article from Stephen Moore posted by one of the moron crew...gee let's see what's wrong with this one!!!

The bailout measure is the Affordable Care Act's controversial "risk corridor" program, which provides financial "protection" against losses to insurers that sponsor exchange plans. The idea of this short-term program was to create a pool of funds from the profits of some insurers with ObamaCare plans to offset the losses of others.

A 2013 analysis by the Society of Actuaries says that the risk corridors program "provides a strong incentive for insurers to participate in the health insurance exchanges set up by the Affordable Care Act." Perhaps too strong an incentive, budget experts worry.

Under the program, if "allowable costs" to an insurer top 103% of the "target amount," the feds subsidize half of those excess payments. The subsidy climbs to 80% of allowable costs that exceed 108% of the target amount. The potential liability to taxpayers is "uncapped," so the sky is the limit on losses.

Well the basic question is who are the "budget experts" to which Mr. Moore refers? Link to a study, a report something that backs up your claim as opposed to the standard Fox News half truth and innuendo style. And why would an incentive to participate be bad? Oh that's right, if none of the insurers participates then the program dies, right? That would be the result Mr. Moore is pushing for?

The sky is the limit on losses only to the extent that there is zero regulation of the insurers. That "sky is the limit" is a wonderful catch phrase to keep the uneducated riled up...which it seems to have already achieved.

But insurance experts warn that this program creates the same moral hazard problem for health insurance that we saw in the mortgage market with Fannie Mae and Freddie Mac. The guarantee on bad mortgages encouraged bad mortgages

More half truths and pure falsehoods. The issue in the mortgage market wasn't moral hazard...that was the effect...the CAUSE was the complete lack of regulation of 1. the mortgage market 2. the derivatives market and 3. the leverage levels of the banks, insurers, Fannie and Freddie.

 

[Gilligan]

Sleep in late today, sweetie?

 

[LibertyBeacon]

I'm just glad I doubled my holdings in insurance company equities. We now have the force of government telling the public that they absolutely must purchase their product with a gun to their head. That same government is also ensuring the insurance companies cannot lose money.

Now, this is the most brilliant part: when you make "too much profit", you can issue a small "refund check", now a bunch of slobbering voters will take to social media going about about how great this ACA thing is.

It's really brilliant all the way around if you think about it.