The recently implemented Affordable HealthCare Act appears already to be on life support. According to recent reports, as few as 1 in 4 registered ACA participants fall within the young- adult age bracket. This paucity of young participants will assuredly result in age demographics way short of the Obama Administration’s goal, thus potentially leaving insurers to foot the bill for the old and sick. If the volume of participants does not increase, particularly within the young- adult age range, insurers will inevitably suffer a loss. Ironically, the authors of the ACA bill have already anticipated this scenario and their solution might surprise you. A recent Foxnews article explains that the administration’s solution boils down to reliance upon you, the taxpayer, to bailout insurers if and when they lose money under ACA.
The Foxnews article candidly elaborates, “Washington’s authority for this bailout was buried deep inside ObamaCare, in the law’s section 1342. This provision authorized what are known as risk corridors that limit the amount of profit insurers could extract from the program and, most significantly, limit their losses. This means that if not enough people sign up for ObamaCare, insurers will lose money and taxpayers will make up the difference. If not enough young and healthy people sign up, as is currently the case, taxpayers will have to pay even more.”
