Seeking to minimize the pain caused by his signature domestic accomplishment, President Obama has flagrantly rewritten Obamacare numerous times since it was first enacted in 2010. And unless Republicans make a stand this September, Obama will flagrantly break the law again, this time costing American taxpayers billions in illegal insurance company bailouts.
This past October, millions of Americans began receiving cancellation notices from their health insurance companies informing them that, despite Obama’s crystal clear promise to the contrary, they would not be able to keep their current health insurance plan. Politifact would go on to label this broken Obama promise the Lie of the Year.
Stuck with a broken website, and facing intense pressure from congressional Democrats, Obama announced in November that he would allow insurance companies to temporarily keep people on their existing health care plans.
But the insurance companies were unhappy with this fix since they were counting on people with cancelled plans to buy more expensive Obamacare-compliant plans. If Americans were allowed to keep their old, less expensive, non-Obamacare-compliant plans, then insurance companies could lose billions.
Enter Obamacare’s risk corridor program which, in theory, can help a steady nascent insurance market by spreading risk among insurers. On paper, the program requires insurers who set their premiums too high to pay into a government fund. Insurers who set their premiums too low would then be able to draw from that fund. If some insurance companies pay into the fund at the same rate that others are draw out of the fund, then the program is not a taxpayer bailout.