Release: IWV Joins Coalition Of More Than 50 Organizations Calling On Congress To Stop The Obamacare Bailouts

FOR IMMEDIATE RELEASE
October 12, 2016

INDEPENDENT WOMEN'S VOICE JOINS COALITION OF MORE THAN 50 ORGANIZATIONS CALLING ON CONGRESS TO STOP OBAMACARE BAILOUTS

Washington, DC — The Independent Women's Voice joins more than 50 organizations in urging lawmakers to prevent a continued taxpayer bailout of ObamaCare. In a letter sent to Congress the coaltion calls for the reversal of billions of dolalrs that the White House illegally diverted from taxpayers to insurers through ObamaCare's Transitional Reinsurance Program. Additionally, it asks lawmakers to halt future attemtps to bail out insureres through the Risk Corridor Program.

CLICK HERE TO READ THE LETTER (PDF)

Dear Members of Congress: 

Several years into its implementation, problems with the so-called Affordable Care Act (ACA) continue to mount. Families and businesses across the country face skyrocketing healthcare premiums and deductibles; they also face fewer insurance options as co-ops fail and insurance companies leave the health care exchanges. 

On top of the billions in subsidies and the mandate that Americans buy insurance, the President’s health care law created several transitional programs intended to stabilize insurance markets and reduce insurance company risk during implementation, including the Transitional Reinsurance Program and the Risk Corridor Program. Insurance companies and the Obama administration are currently seeking to extend these programs and expand their scope. 

The Transitional Reinsurance Program requires depositing $5 billion into the U.S. Treasury to offset the costs of Obamacare. Yet the Obama administration has failed to deposit a single dollar into the Treasury to date—instead, it has redirected these funds toward insurance companies experiencing greater-than-expected losses. 

The Risk Corridor Program allows insurance companies to underwrite risky policies that they wouldn’t otherwise cover, putting taxpayers on the hook if the costs of a plan run higher than expected. This program has been overwhelmed by the magnitude of insurance company financial losses, leaving the budget-neutral program unable to provide all of the requested bailout money. Although current law prohibits the use of fiscal year 2016 appropriated funds to supplement the Risk Corridor Program, the Obama administration announced that it will seek to end the prohibition and open the risk corridor bailout spigot. 

In classic fashion, the Obama administration has indicated intentions to work around Congress to get what it wants. In a Sept. 9 memorandum, the Center for Medicare and Medicaid Services said it is open to resolving baseless lawsuits filed by insurance companies seeking additional payments under the Risk Corridor Program. Through settlements, the administration could bypass Congress altogether and continue to misuse taxpayer dollars to pay for bailouts. 

Thankfully, there are actions that Congress can take to stop this. The first is to recover the $5 billion illegally given to insurance companies through the reinsurance program by passing the Taxpayers Before Insurers Act (S. 2803, HR 5904), sponsored by Senator Sasse and Congressman Walker. The second is to prevent this from happening again — Congress should continue the budget neutrality provision in the risk corridor program, as well as pass legislation preventing the administration from using the “Judgment Fund” or any other taxpayer dollars to give money to insurers. 

American households deserve better than to have their tax dollars go toward bailouts for insurance companies. Thank you for your attention to this important issue. 

Sincerely,

Jim Martin, Chairman, 60 Plus Association