One of the most objectionable parts of the Obamacare law has been “risk adjustment payments” to health insurers who can’t make money selling Obamacare insurance policies. The federal government hands out cash to these insurance companies, to “stabilize” the health insurance market. In essence, the payments are outright bribes to companies to continue selling Obamacare policies and keep the insurance exchanges afloat.
On their own, subject to ordinary market forces, most of the companies would have bolted the exchanges long ago.
Now the administration has halted more than $10 billion in risk adjustment payments, citing a court decision that said the government was using an incorrect formula to figure out how much taxpayer money should be doled out.
The payments are intended to help stabilize health insurance markets by compensating insurers that had sicker, more expensive enrollees in 2017. The government collects the money from health insurers with relatively healthy enrollees, who cost less to insure.
Read the full story from American Thinker
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