Stop bending the law to protect Obamacare

Indeed, insurers requested $2.9 billion to cover 2014’s higher-than-expected losses. But profitable insurers were only able to contribute $360 million to the risk-corridor program. Congress dictated that the program had to be budget-neutral — that is, the money paid out to insurers could not exceed the money collected. So insurers received just 12.6 percent of their total claims.

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That didn’t sit well with several insurers, who have sued the Obama administration for failing to deliver on 2014 claims.

Those who lost money in 2015 may end up on the short end this time around. Federal officials just announced that all the funds they collected in 2015 will be used to cover 2014 losses.

The administration is also considering some alternative legal jiu-jitsu to funnel money to insurers. In a recent statement, federal officials indicated that they will try to pay insurers via individual court settlements. Since the money for such settlements comes out of a separate fund, it avoids the program’s requirement that the payments be budget-neutral.

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