Dear Senator Rubio and Representative Griffin:
On behalf of more than two million Americans for Prosperity activists in all 50 states, I write in strong support for your legislation to eliminate section 1342 of President’s health care law, the “risk corridor” provision. Your legislation, the Obamacare Bailout Prevention Act (S.1726 and H.R. 3541), would revoke authority from HHS to stabilize health care premiums using taxpayer dollars under the President’s heath care law.
The President’s health care law is essentially one giant handout the health insurance industry. On top of the $1.1 trillion in subsidies that the law grants to health insurance companies and the mandate that Americans buy their product, the health care law includes another program that will force tax payers to bailout insurance companies. This provision of the law allows HHS to reimburse insurance companies up to 80% of their additional cost during the first three years of the health care law with taxpayer money.
Due to the problems with the health insurance exchange websites, young healthy people are not enrolling in the health care law in large numbers. As a result, even though initially CBO scored the Risk Corridor provision as budget neutral, it will end up being very expensive and may put taxpayers on the hook for potentially billions of dollars. Americans for Prosperity has raised concerns about the “Reinsurance, Risk Corridors and Risk Adjustment,” going back to 2011, and our concerns continue.
Americans for Prosperity is proud to support your legislation to prevent a taxpayer bailout of insurance companies. I urge your colleagues to support its passage, and I look forward to working with you in the future.
Christine Harbin Hanson
Federal Affairs Manager
Americans for Prosperity