Republicans Try To Sabotage Obamacare With Higher Premiums
SAHIL KAPUR – JANUARY 22, 2014, 6:00 AM EST
Conservative wonks and Republican lawmakers are coalescing around a new strategy to sabotage Obamacare by repealing a temporary piece of the law designed to hold down premiums in the event of major market disruptions.
The provision -- called "risk corridors," but dubbed the "Obamacare bailout" by the law's opponents -- seeks to stabilize costs by creating a pot of money that takes in funds from insurers who enroll healthier customers and uses it to pay out insurers who enroll sicker customers. It's a safety valve that sunsets after 2016. The repeal push is clever messaging in a sense because it lets conservatives snatch the mantle of populism from liberals against wealthy insurance companies. But it comes with its share of dangers, too.
Last November, as TPM reported, Sen. Marco Rubio (R-FL) introduced legislation to repeal this provision. Since then it has picked up 13 Republican co-sponsors, including Senate Minority Leader Mitch McConnell, and two companion bills in the House, which are supported by numerous Republicans. The idea has been championed by conservative lobbying groups like the Club For Growth and Heritage Action, and pushed by writers including Charles Krauthammer in the Washington Post, Ramesh Punnuru in Bloomberg View and Deroy Murdock in National Review.
The conservatives are open about the end goal: collapse Obamacare by causing higher premiums on the law's marketplaces for the newly insured, which progressive experts who support Obamacare agree would occur.
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http://talkingpointsmemo.com/dc/obamacare-bailout-risk-corridors-conservatives-sabotage
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