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Circumvention of Law in the Bail-Out of Health Insurers Crushed by Obamacare Losses

May 5, 2016 // News

cash-money-hands-dealOne Obamacare co-op, the Health Republic Insurance of Oregon, filed a $5 billion class-action suit after their company failed and was unable to collect payment due them under the Affordable Care Act’s Risk-Corridor program.  The program was supposed to bail out insurers who suffered losses using the fees paid into the program by participating insurers.

Noteworthy:

Although bail-outs paid in the first year did, in fact, come from user fees, other carriers were forced to close down once the fees were used up. Critics concerned about the separation of powers say that the administration is turning a blind eye and “settling” suits under the Judgement Fund as a way to bailout failed insurers.

Congress has until June 24th to file a brief.

In other news, Humana announced today that they are considering pulling out of the Obamacare market in 2017 due to a 46% first- quarter earnings drop attributed to the high cost of ACA individual plans and their consumer direct Medicare Advantage plans.

 

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