Sen. Rubio, legislators ink bill to halt risk program payments to ACA insurers

With hopes to prevent the federal government from issuing settlements over risk corridor payments, U.S. Sens. Marco Rubio (R-Fla.), Ben Sasse (R-Neb.), John Barrasso (R-Wyo.) and Mike Lee (R-Utah), introduced a bill called the HHS Slush Fund Elimination Act.

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Several health insurers who were owed payments under the risk corridor program sued the federal government after HHS notified insurers they would receive 12.6 percent of payment owed for 2014. The risk corridor program, which runs through 2016, fell short by more than $2.5 billion in its first year because of financial losses incurred on the individual market.

While Sen. Rubio said repealing and replacing the ACA is a priority in the next few months, he said “one of the biggest battles we face right now is stopping the Obama Administration from ignoring and using billions in taxpayer dollars to bail out health insurance companies.”   

If passed, the bill would ban the government from using federal funds to pay any settlement over lawsuits regarding the ACA’s risk programs.  

More articles on payer issues:
Blue Shield California CEO: ‘We’re not running for the hills’
Eastern Idaho Regional Medical Center, BCBS end ACA plan contract
Horizon adds 3 hospitals to Omnia network

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