Tags: Barack Obama | Healthcare Reform | obamacare | risk | corridor | program | lost

Obamacare Risk Corridor Program Lost $5 Billion in 2015

Obamacare Risk Corridor Program Lost $5 Billion in 2015

(AP)

By    |   Monday, 21 November 2016 07:32 PM

Obamacare insurers in the government's risk corridor program lost more than $5 billion in 2015, according to new data.

Forbes cites figures from the Centers For Medicare & Medicaid Services that show insurance companies in the program lost at least $5.2 billion on individual market plans in 2015. They lost at least $588 million on small group plans.

That brings the total losses in the risk corridor program from 2014 and 2015 to more than $8.3 billion, Forbes reports. And those big losses come despite the fact that insurance companies received a total of almost $8 billion in money that helped offset their cost due to government subsidies that lower the cost of consumers' plans.

The risk corridor program encourages reluctant insurers to offer plans on the federal exchanges. Insurers with lower costs in this program contribute money into a fund that helps companies with higher costs.

The program began in 2014 and, according to the above data, recorded losses approaching $10 billion in its first two years.

It was reported in September that a taxpayer bailout may be necessary to help these insurance companies recover the losses they've incurred from doing business via Obamacare.

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Obamacare insurers in the government's risk corridor program lost more than $5 billion in 2015, according to new data.
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Monday, 21 November 2016 07:32 PM
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