Awesome. I'm sure this won't affect rates at all.
Insurers will get far less money than promised from the federal government this year — and a few billion dollars less than they requested — to help pay for their sickest customers.
Insurers learned late Thursday that they'll receive just $362 million out of the $2.9 billion in requested for 2014 for the program, according to an announcement by the Department of Health and Human Services.
That's because a program created under the 2010 Affordable Care Act hasn't brought in nearly as much money as it needs to pay out. As insurers enrolled more older, sicker Americans under the new healthcare law, they were promised some federal money to help cover their new costs, through a program known as risk corridors.
For example, if a health plan found itself with at least 3 percent more medical claims than it had anticipated, the government would reimburse it for half of those losses. If claims surpassed expectations by more than 8 percent, the government would pay 80 percent of the losses.
But the law requires the program to be budget-neutral, meaning that if there aren't adequate funds, insurers have to go without. The HHS announcement, insurers will get about $2.5 billion less than they asked for, and they weren't pleased.
"Stable, affordable coverage for consumers depends on adequate funding of the risk corridor program," said Marilyn Tavenner, CEO of America's Health Insurance Plans. "It's essential that Congress and CMS act to ensure the program works as designed and consumers are protected."
The administration insisted the insurers will still eventually get their entire payouts, sometime within the next two years of the temporary program. The program expires after 2016. HHS officials said that if there's still a shortfall after that point, the agency will "explore other sources of funding" and potentially work with Congress on the issue.
http://www.washingtonexaminer.com/a...al&utm_source=twitter.com&utm_campaign=buffer
Insurers will get far less money than promised from the federal government this year — and a few billion dollars less than they requested — to help pay for their sickest customers.
Insurers learned late Thursday that they'll receive just $362 million out of the $2.9 billion in requested for 2014 for the program, according to an announcement by the Department of Health and Human Services.
That's because a program created under the 2010 Affordable Care Act hasn't brought in nearly as much money as it needs to pay out. As insurers enrolled more older, sicker Americans under the new healthcare law, they were promised some federal money to help cover their new costs, through a program known as risk corridors.
For example, if a health plan found itself with at least 3 percent more medical claims than it had anticipated, the government would reimburse it for half of those losses. If claims surpassed expectations by more than 8 percent, the government would pay 80 percent of the losses.
But the law requires the program to be budget-neutral, meaning that if there aren't adequate funds, insurers have to go without. The HHS announcement, insurers will get about $2.5 billion less than they asked for, and they weren't pleased.
"Stable, affordable coverage for consumers depends on adequate funding of the risk corridor program," said Marilyn Tavenner, CEO of America's Health Insurance Plans. "It's essential that Congress and CMS act to ensure the program works as designed and consumers are protected."
The administration insisted the insurers will still eventually get their entire payouts, sometime within the next two years of the temporary program. The program expires after 2016. HHS officials said that if there's still a shortfall after that point, the agency will "explore other sources of funding" and potentially work with Congress on the issue.
http://www.washingtonexaminer.com/a...al&utm_source=twitter.com&utm_campaign=buffer
