Lance: STOP THE INSURER BAILOUT

7th District Congressman Introduces Legislation To Protect Taxpayers From Potentially Costly Bailout Under ObamaCare

 WASHINGTON, D.C. --- Congressman Leonard Lance (NJ-07) today announced legislation to protect taxpayers from a potential bailout for the insurance industry under ObamaCare.

Lance’s bill, H.R. 3851, the “No Bailout for Insurance Companies Act of 2014,” would repeal two sections of the ObamaCare law:  Section 1341 – the “reinsurance” fund – and Section 1342 – the “risk corridor” provision. The reinsurance and risk corridor provisions are designed to help cover insurance company losses under ObamaCare.

"Americans are fed up with taxpayer-funded bailouts and Washington politicians picking winners and losers,” said Lance, a member of the House Energy and Commerce Health Subcommittee, "Congress should completely eliminate the possibility of a bailout of insurance companies by passing legislation to eliminate the reinsurance and risk corridor provisions, ensuring that no taxpayer-funded bailout of the health insurance industry will ever occur under ObamaCare.” 

Pundits and policy experts are concerned that ObamaCare is predicated upon signing up a sufficient number of younger, healthier people for insurance through the exchanges - at a much higher premium cost - in order to shift the cost away from an older population that is typically more expensive to cover.

According to recent data released by the Obama administration, only 24 percent of Obamacare's enrollees are young adults, well below the 40 percent benchmark set by the administration. If this pattern continues, and Lance says he believes it will, then the ObamaCare costs begin spiraling out of control and the insurance industry begins suffering significant losses.

 “I am committed to repealing ObamaCare and replacing it with real reforms that will make health care more affordable and accessible.  In the meantime, Congress must take every step necessary to protect Americans from this unworkable law — including eliminating the potential for another taxpayer-funded bailout,” concluded the 7th District lawmaker.

Additional resources:

National Review Online:  “Insurance-Company Bailouts,” Jan. 14, 2014

Weekly Standard:  “Bailing Out Health Insurers and Helping Obamacare,” Jan. 13, 2014 (Jeffrey Anderson)

Buzzfeed: “Lobbying Talking Points Show Insurer Freak-Out Over Potential Obamacare Provision Repeal,” Jan. 10, 2014 (Kate Nocera)

The Washington Post:  “Stop the Bailout—Now,” Jan. 2, 2013 (Charles Krauthammer)

Washington Examiner:  “How Obama Wants to Sweeten the Bailout for Insurers Under Obamacare,” Dec. 5, 2013 (Philip Klein)