News Column

Cochran: Stop Obamacare Insurance Industry Bailouts

January 23, 2014

WASHINGTON , Jan. 23 -- The office of Sen. Thad Cochran , R- Miss. , issued the following news release: U.S. Senator Thad Cochran (R-Miss.) today said the administration should not have the sole discretion to determine when to extend taxpayer-funded bailouts to health insurance companies that lose money because of the defective Patient Protection and Affordable Care Act (PPACA), or Obamacare. Cochran has cosponsored the Obamacare Taxpayer Bailout Prevention Act (S.1726), which would repeal a provision in the Affordable Care Act that allows for taxpayer-funded bailouts of health insurance companies at the administration's discretion. This bill would require the administration to seek congressional approval to provide federal support to offset the losses experienced by the insurance industry under PPACA. "The health insurance industry may find itself in a bind because of the Affordable Care Act. But the Obama administration should not have a free hand to give them taxpayer-funded bailouts," Cochran said. "Beyond the cost of these bailouts, these payments would likely end up being one more smokescreen to hide just how harmful and costly this ill-conceived law is turning out to be." The Affordable Care Act, which Cochran has repeatedly opposed, created so-called "risk corridors" as a safety-net for insurers that experience financial losses as more high-risk consumers gain health insurance coverage. Some insurance companies are already preparing cases for federal bailouts based on negative projections for their PPACA risk pools. S.1726 was introduced by Senator Marco Rubio (R-Fla.). In addition to Cochran, the measure is cosponsored by Senators Saxby Chambliss (R-Ga.), Mike Enzi (R-Wyo.), Deb Fischer (R-Neb.), Jeff Flake (R-Ariz.), John Hoeven (R-N.D.), James Inhofe (R-Okla.), Mike Lee (R- Utah ), John McCain (R-Ariz.), Mitch McConnell (R-Ky.), Rand Paul (R-Ky.), Pat Roberts (R-Kan.), and David Vitter (R-La.). The bill has been referred to the Senate Committee on Health , Education, Labor and Pensions. TNS 30TacordaCheng-140124-4612121 30TacordaCheng

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Source: Targeted News Service

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