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Insurers grapple with big Obamacare funding shortfall


MDM4AU

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For the record, I called this a long time ago...

Obamacare insurers have been struggling with a shortfall of federal funds, which could lead to higher premiums for Obamacare plans, experts said.

The Affordable Care Act set up a risk corridor program to help insurers that take on too many sickened or older Americans. The law requires insurers to accept every applicant regardless of health status or pre-existing condition.

The program works by having insurers whose profits reach past a certain threshold paying into it, and the administration paying out to insurers that have big losses.

Obamacare insurers requested about $2.9 billion in risk corridor payments for the 2014 calendar year, but they only received $362 million, a mere 12 percent of what they asked for. The shortfall happened because insurers requested more than what was paid into the program.

http://www.washingto...article/2574964

Health insurers that sold plans and lost money on the Affordable Care Act's exchanges in 2014 will receive only a portion of their promised safety-valve payments, according to government data released Thursday.

Read more here: http://www.modernhea.../NEWS/151009996

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