New documents reveals that top White House adviser Valerie Jarrett personally conducted damage control with nervous health insurance companies after those companies saw no other way to hold premiums down under Obamacare without a taxpayer-funded bailout.
Their pleas worked.
A month later, the Obama administration issued rules to allow for a taxpayer-funded insurer bailout.
Chet Burrell, president and CEO of Care First Blue Cross Blue Shield, wrote personally to Jarrett in March 2014 that insurers would need taxpayer funding from Obamacare’s risk corridor program in order to cut back on substantial losses, according to a House Oversight and Government Reform Committee report released Monday.
Burrell warned that companies may hike premiums by “20 percent or more” due to the Obama administration’s initial policy that the risk corridor program not be augmented with taxpayer dollars.
The risk corridor program was intended to pool payments from insurers and redistribute the funding to the companies that attracted the sickest and most costly influx of patients — leaving the companies that signed up the more profitable customers with the bill.