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Senators Request Answers from DOJ, HHS on Potential Multimillion Dollar Insurance Company Bailout

Sep 27, 2016 | Press Releases


Washington, D.C. – Today, Senators Mike Lee (R-UT), John Barrasso (R-WY), Marco Rubio (R-FL), and Ben Sasse (R-NE) expressed concern over the participation of the Department of Justice, Department of Health and Human Services, and Centers for Medicare & Medicaid Services in a potential multimillion dollar bailout of select insurance companies through the Affordable Care Act’s Risk Corridors Program (RCP). In a letter to Attorney General Loretta Lynch, Secretary Sylvia Burwell, and Acting Administrator Andy Slavitt, the senators requested an explanation of the availability of funds to settle claims for payment under the RCP.

The letter states: “The health care law contained three risk mitigation programs, one of which is the temporary Risk Corridor Program.  This program was originally intended to be implemented in a budget neutral manner.  This intention was confirmed when Congress passed, with Presidential approval, two separate provisions of appropriations law confirming its budget neutrality. It now appears the Administration is preparing to circumvent these actions.”

The letter discusses the use of the judgement fund to resolve claims filed against the government for non-payment under the RCP, concluding that “it would be inappropriate for the Judgement Fund to be used to settle any litigation stemming from the risk corridor program. Accordingly, we write to ascertain specifically how CMS intends to go about seeking ‘resolution of those claims’ so that federal law is not violated.”

The full text of the letter is available here.

Last October, the Obama Administration confirmed Rubio’s efforts to stop ObamaCare’s taxpayer-funded bailouts of health insurance companies succeeded in saving taxpayers over $2.5 billion.