In an article for Inside CMS, FaegreBD Consulting Senior Director Mike Adelberg commented on the news that health care insurers will not receive any money under the risk corridor program for 2015 because the collected money is going towards benefit year 2014 instead. Administration officials will continue to press to Congress to appropriate necessary money or use other funds to pay insurers for risk corridors if the program falls short at its conclusion in 2016. The risk corridors are a three-year transitional program established by the Affordable Care Act to compensate insurers for losses in the “Obamacare” health insurance exchanges—but Congress subsequently restricted the administration’s ability to pay the resulting claims.
“This isn't good news for issuers who are smarting, but DHHS's strong reiteration that the federal government must honor its risk corridor obligation strengthens the claims of issuers seeking to recover funds at the conclusion of the three year program,” said Adelberg.
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