Nov 19 2013
Under ObamaCare’s section 1342, so-called risk corridors were established for the law’s first three years as a safety net for insurers who experience financial losses. Last week’s announcement by President Obama that he would act unilaterally to “fix” his broken “you can keep your plans” promise now increases the likelihood of a bailout of health insurance companies with taxpayer dollars. Rubio’s bill would fully repeal the risk corridor provision, thereby ensuring that no bailout will occur under ObamaCare’s section 1342.
“The American people are sick of Washington picking winners and losers, especially since the chosen losers often end up being taxpayers who foot the bills for Washington’s mistakes,” said Rubio. “Washington’s bailout culture must end, and eliminating ObamaCare’s blank check for a bailout of insurance companies is a common sense step to protect taxpayers when ObamaCare fails.”
The ObamaCare Bailout Prevention Act is co-sponsored by Senators Saxby Chambliss (R-GA), Jim Inhofe (R-OK), Mike Lee (R-UT), Mitch McConnell (R-KY), Rand Paul (R-KY) and David Vitter (R-LA).
A PDF of the draft legislation is available here. In a letter available here, Rubio has also requested that the Congressional Budget Office (CBO) examine the budgetary impact, or score, of the risk corridor program under ObamaCare’s section 1342.