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Preempting a Health Insurance "Bailout"

by Douglas Kellogg / /

Obamacare features a fund which pays out to insurance companies when their costs exceed targets (read more about this in NTU's letter to the Hill).

The reason this particularly matters to taxpayers is the administration seems willing to "stretch" this power - meaning taxpayers could be bailing out insurance companies when whatever is banked in this fund (otherwise known as squat) runs out as Health and Human Services pays off those insurers because Obamacare is forcing them to offer excessively costly plans.

But hey, insurance companies at least had a seat at the table during the hammering out of the Affordable Care Act (PPACA), while taxpayer concerns and fiscal diligence were ignored. Taxpayers shouldn't, yet again, serve as a piggy bank for private entities who are in with the federal government.

That's why National Taxpayers Union and 32 other national groups and prominent individuals have signed on to support doing away with the provision (Section 1342 of the PPACA) that could make this grim scenario a reality. Senator Marco Rubio (R-FL) and Rep. Tim Griffin (R-AR) have introduced a bill which would accomplish this, S. 1726 in the Senate and H.R. 3541 in the House.

Make some noise on this issue by contacting your Representative and Senators and telling them to support that legislation! This is yet another way Obamacare is finding to hurt taxpayers, and we cannot afford it.