House Republicans Consider Repealing PPACA Risk Corridors for Insurers

Republican lawmakers are considering extending the U.S. debt limit by one year in exchange for the repeal of the Patient Protection and Affordable Care Act's risk corridors for health insurers, according to a report from The Washington Post.

Several House members told the Post Republican leaders have narrowed their debt limit strategy options to either asking for the repeal of the risk corridor program or for approval of the Keystone XL pipeline project, which involves a proposed 1,179-mile oil pipeline extending from Alberta to Nebraska. House Speaker John Boehner (R-Ohio) is reportedly open to either strategy.

The PPACA risk corridor program limits health plans' losses and gains beyond a specified range to stabilize premiums and prevent inaccurate premium setting during the early years of the health insurance exchanges. HHS collects funds from health plans with lower-than-expected claims and makes payments to those with higher-than-expected claims. This applies only to qualified health plans offered through the exchanges and is in effect from 2014 to 2016.

Jacob Lew, secretary of the U.S. Department of the Treasury, has informed Congress the U.S. will reach its debt limit this Friday. The best course of action would be for federal legislators to act before then to ensure continued financing of the federal government, according to Mr. Lew.

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