House Panel: O-Care ‘Bailout’ Could Cost $1B This Year Alone

An ObamaCare revenue-sharing program amounts to a taxpayer bailout of insurance companies, the chairman of a House Oversight subcommittee said Wednesday, adding the bill could run more than $1 billion just in 2014.

Rep. Jim Jordan (R-Ohio), chairman of the Economic Growth, Job Creation and Regulatory Affairs panel, disputed a previous Congressional Budget Office (CBO) report that the risk corridors would cost the government nothing.

“The American people have a right to know how much these backdoor bailouts will cost,” Jordan said. “While I have great respect for the analysts at CBO, their findings in this area did not square with the evidence presented by numerous health policy experts.”The Temporary Risk Corridors Program was set up under the Affordable Care Act (ACA) to distribute funds from insurers with healthier, less expensive consumers to those with sicker, more costly enrollees.The program is intended to spread the cost of risk in the early stages of the new healthcare law.