Marco Rubio Moves to Block Obamcare Bailout of Insurance Companies
Taxpayer Alert: Obamacare Provides for Bailout to Cover Insurance Company Losses
In an article written this week by Senator Marco Rubio, the Florida Republican notes that whenever there are mistakes in Barack Obama’s presidency, American taxpayers get the bill.
“This perverse bailout culture is again evident in Obamacare, which we now know contains a little-known provision that grants the administration a blank check for a taxpayer-funded bailout of insurance companies when Obamacare fails,” Rubio wrote.
Rubio noted that when Obama recently announced his order to allow health insurers to keep offering health plans that people wanted to keep, he left out one key fact.
“Buried deep within Obamacare’s approximately 1,000 pages was section 1342, which authorized what are known as risk corridors that limit the amount of profit insurers could extract from the program while also limiting their losses.”
In other words, the law limits insurance company profits, but it also limits insurance company losses. If there are losses incurred because of Obamacare requirements, the taxpayers will pay for a bailout. Rubio wants to block a bailout now.
“I recently introduced legislation that would completely eliminate Obamacare’s risk corridor provision,” he wrote. “My one-page bill would instantly wipe away the taxpayers’ exposure to millions – and potentially billions – of dollars worth of a bailout for insurance companies.”
Rubio wrote that the Washington culture now contains the damage inherent in Obamacare and adds the possibility of the corrosive nature of a government bailout.
“If Obamacare can’t survive without this bailout provision—whereby Washington picks insurers as winners and taxpayers as losers—it is more evidence of why it should be repealed.”