http://thehill.com/blogs/congress-b...bamacares-risk-corridor-corruption-never-ends
The risk corridors were never more than a bribe to get insurers into ObamaCare's marketplaces. The program was supposed to transfer excess funds from exchange plans with lower-than-expected claims to insurers with higher-than-expected claims to safeguard them against losses.
The exchanges' finances haven't worked as planned. At 11.1 million, this year's enrollment is less than half what the Congressional Budget Office expected. On top of that, young people only made up 28 percent of enrollees in 2016 -- well below the 40 percent needed to keep the exchanges financially viable.
With so many coverage providers hemorrhaging cash, not many plans have been able to pay into the risk corridor pot. In fact, 2014 collections totaled only $382 million -- nowhere near the $2.87 billion promised to insurers.
And so, in the program's first year, the Centers for Medicare and Medicaid Services made good on only 12.6 percent of insurers' risk-corridor claims.
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But the government can't legally give into insurers' demands.
The law requires the risk corridors to be budget-neutral. So the feds can only send out what they collect from insurers, unless Congress appropriates additional funds.
And with Republicans in control of both the House and Senate, that's not going to happen.
Remarkably, the administration seems open to flouting the law in order to take care of its insurance-industry debts. In September, federal officials hinted that they'd tap something called the Judgment Fund, a 60-year-old entity housed in the Treasury Department and designed to settle government debts.
Forty-six members of the House have signed a letter warning the administration against such a bailout. "It's an end run on the clear . . . intent of Congress," said Rep. Morgan Griffith (R-Va.).
Griffith and his fellow Republicans may have an unlikely ally -- the Obama administration's own Department of Justice. In October, the DOJ moved to dismiss two risk-corridor lawsuits -- rejecting the very premise that the federal government owes those insurers a cent.