Americans for Tax Reform today expressed support for a policy rider preventing a taxpayer funded Obamacare risk corridor bailout.
The risk corridor program was designed as one of three programs to hide the true costs of Obamacare plans by redistributing funds from winners to losers. A provision in last year’s funding bill required this program to be budget neutral, so when there were not enough winners, Obamacare insurers were paid just 12.6 percent of what they requested.
Despite the failure of this program, Obamacare chief Andy Slavitt recently promised insurance companies he would pay them the full sum they asked for via a taxpayer funded bailout.
Fortunately, a provision in the Omnibus extends the budget neutrality of risk corridors for an additional year and blocks Slavitt from bailing out special interests with taxpayer funds.