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Letter


NTU joins coalition to eliminate “risk corridor” payments in the Affordable Care Act

January 21, 2014


The Honorable Senator Marco Rubio

United States Senate

Washington, D.C. 20010

 

The Honorable Representative Tim Griffin

House of Representatives

Washington, D.C. 20515

 

Dear Senator Rubio and Representative Griffin:

 

We, the undersigned, strongly support and endorse your efforts to eliminate the “risk corridor” payments in the Affordable Care Act that prevent participating insurance companies from sustaining Obamacare-inflicted financial losses.

 

Obamacare's risk corridor program is nothing more than a built-in, blank-check bailout of the health insurance companies. These annual, unlimited payments, intended to mitigate the law’s effects on insurers and mask its true costs, will in fact only encourage private companies to gamble with taxpayers' money. This bailout has no policy justification except to put taxpayers on the hook for losses incurred by private corporations.

 

Free markets necessitate that private companies rightly keep the rewards of their own good choices, and equally they must bear the costs of their own poor choices.  It is wrong for private health insurance companies to shift their financial losses onto the American taxpayer.

 

The Administration's enrollment reports suggest that the exchanges are attracting a disproportionate share of older people, while high premiums and out-of-pocket costs could well be deterring the healthy from signing up. If so, insurers can be expected to experience significant financial losses, perhaps running into tens of billions of dollars. While the exact budgetary cost won't be known until the exchanges have been operating for a year, we do know that it will come on top of a staggering $1 trillion already slated under Obamacare to go to insurance companies over the coming decade.

 

Eliminating the risk-corridor payments would avert an additional massive wealth transfer from the American taxpayer to private insurers.

 

We hope you share this letter with colleagues and congressional leaders in order to build support for repealing Obamacare's built-in bailout of the insurance industry.

 

Sincerely,

 

Matt Kibbe

President

FreedomWorks

 

Dan Perrin

President

The HSA Coalition

 

Michael A. Needham

CEO

Heritage Action for America

 

Amy Kremer

Chairman

Tea Party Express

 

Jim Martin

Chairman

60 Plus Association

 

Heather Higgins

President and CEO

Independent Women's Voice

 

The Honorable Betsy McCaughey

Former Lieutenant Governor, State of New York

Author, Beating Obamacare 

 

Grover Norquist

President

Americans for Tax Reform

 

Brandon Arnold

Vice President of Government Affairs

National Taxpayers Union

 

David Williams

President

Taxpayers Protection Alliance

 

Peter Ferrara

Heartland Institute

National Tax Limitation Foundation

 

Thomas Schatz

President

Council for Citizens Against Government Waste

 

Brian Baker

President

Ending Spending

 

Seton Motley

President

Less Government

 

Phil Kerpen

President

American Commitment

 

Dave Wallace

Founder

Restore America's Mission

 

Ken Hoagland

Chairman

Restore America's Voice

 

Colin A. Hanna

President

Let Freedom Ring

 

John Tate

President

Campaign for Liberty

 

Andrew Langer

President

Institute for Liberty

Mat Staver

Chairman

Liberty Counsel Action

 

Gregory T. Angelo

Executive Director

Log Cabin Republicans

 

Peter J. Thomas

Chairman

The Conservative Caucus

 

Amy Ridenour

Chairman

National Center for Public Policy Research

 

William H. Shaker

President 

American Council for Health Care Reform 

 

Eric Novack, MD

Chairman

US Health Freedom Coalition

 

Greg Scandlen

Founder

Health Benefits Group

 

Christopher J. Conover

Research Scholar

Duke University

 

Donna Hamilton

Executive Director

Virginians for Quality Healthcare

 

Naomi Lopez Bauman

Illinois Policy Action

 

Ginni Thomas

Liberty Consulting

 

Dan Bongino

2012 Republican Nominee for United States Senate

Maryland

 

Morton Blackwell

Chairman

The Weyrich Lunch