That Obamacare 'Bailout' Saves Taxpayers $8 Billion

[Bill USA]

[font size="+1"]The Congressional Budget Office expects insurance companies to pay in more than they take out.[/font][font size="3"]...for a net savings to the Government (i.e. us) of about $8 BILLION.[/font]


http://www.nationaljournal.com/health-care/that-obamacare-bailout-saves-taxpayers-8-billion-20140204

The Obamacare program Republicans have criticized as a "bailout for insurance companies" will actually save the federal government about $8 billion, the Congressional Budget Office said Tuesday.

The program in question, known as risk corridors, was designed to stabilize insurance premiums if the pool of people who sign up for coverage is different than expected.

Many Republicans, led by Sen. Marco Rubio, want to repeal the program—perhaps as part of an agreement to raise the debt ceiling. But the program will probably save the government money, CBO said in its revised budget figures.

Here's how risk corridors work: When insurers' real-life costs are higher than what they expected when they set their premiums, the government absorbs some of the losses. When insurers' costs are lower than expected, they pay into the program.
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