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

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.




Matt Kibbe




Dan Perrin


The HSA Coalition


Michael A. Needham


Heritage Action for America


Amy Kremer


Tea Party Express


Jim Martin


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


Americans for Tax Reform


Brandon Arnold

Vice President of Government Affairs

National Taxpayers Union


David Williams


Taxpayers Protection Alliance


Peter Ferrara

Heartland Institute

National Tax Limitation Foundation


Thomas Schatz


Council for Citizens Against Government Waste


Brian Baker


Ending Spending


Seton Motley


Less Government


Phil Kerpen


American Commitment


Dave Wallace


Restore America's Mission


Ken Hoagland


Restore America's Voice


Colin A. Hanna


Let Freedom Ring


John Tate


Campaign for Liberty


Andrew Langer


Institute for Liberty

Mat Staver


Liberty Counsel Action


Gregory T. Angelo

Executive Director

Log Cabin Republicans


Peter J. Thomas


The Conservative Caucus


Amy Ridenour


National Center for Public Policy Research


William H. Shaker


American Council for Health Care Reform 


Eric Novack, MD


US Health Freedom Coalition


Greg Scandlen


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



Morton Blackwell


The Weyrich Lunch