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Insurers grapple with big Obamacare funding shortfall


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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.


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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