Obama administration is illegally diverting billions to insurance companies

posted by
October 6, 2016
Cato Institute
by Michael F Cannon  
Posted in Commentary

"Generally speaking, the reinsurance program taxes consumers in non-Obamacare plans to subsidize insurers who sell Obamacare plans. The program collects $25 billion from consumers, with $20 billion going to Obamacare-participating insurers and $5 billion to the federal treasury. The law is specific: the amount that each health insurance issuer pays toward the $5 billion designated for the U.S. Treasury 'may not be used for the [reinsurance] program.' But once insurance companies participating in Obamacare's Exchanges started suffering huge losses and heading for the exits, the administration began funneling them the money that was supposed to go to the Treasury. The administration has so far diverted $3 billion -- and counting." (10/06/16)

http://www.cato.org/publications/commentary/obama-administration-illegally-diverting-billions-insurance-companies  

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