The “Risk Corridor” program is a measure written into the Patient Protection & Affordable Care Act (ObamaCare) for the purpose of protecting health insurance providers from the very situation that we see unfolding today. Too small a number of young, healthy people are proving to be stupid enough to enroll in the ACA, so the health insurance companies are not seeing enough revenue from these “invincibles” to fully subsidize the health care costs of the older, less healthy people. The Risk Corridor program was a provision in the law that would provide offsetting payments to the health insurance companies if this happened. However, the ObamaCare law specifically limits this program to the first three years, and therefore expires on December 31, 2016, shortly after the next presidential election.
Now comes word from Susan Ferrechio of the Washington Examiner that:
The Obama Administration may extend beyond 2016 a federal reimbursement program for health insurance companies that lose money by participating in the newly created health care exchanges.
Industry insiders told the Washington Examiner a plan to extend the Affordable Care Act’s “risk corridors” are under discussion, but that administration officials have not made a final decision.