A group of Republican senators are pushing a plan to block $1 billion in payments to insurance companies meant to smooth over their entry into Obamacare marketplaces.
In a letter to Speaker John Boehner, Sen. Marco Rubio proposed blocking the “risk corridor” payments, which compensate insurers who underestimate the costs of providing insurance through the Affordable Care Act. Critics charge that the payments are, in effect, taxpayer-funded bailouts.
“The American people expect us, as Members of Congress, to fulfill our Oath of Office and defend the Constitution,” Rubio wrote. “Therefore, we must act to protect Congress’ power of the purse and prohibit the Obama administration from dispersing unlawful risk corridor payments providing for an Obamacare taxpayer bailout.”
The letter was signed by 13 additional GOP senators, including John Barrasso of Wyoming, Mike Lee of Utah and Ted Cruz of Texas.
White House officials have signaled they plan to use the risk corridor payments to help insurers keep policy costs low in the healthcare marketplace. However, they may not be necessary if insurers priced their plans correctly for the pool of customers they ended up with.
The fight will turn on whether or not Congress has the authority to block the payments.
Administration officials said they money does not require congressional approval because they are considered “user fees.” But a Government Accountability Office report last week concluded Obama would need permission from Congress to make the payments.
That sets up a potential showdown over the payments when Congress debates government funding for 2015 later this year.
A short-term measure expires on Dec. 11 and lawmakers are expected to pass another “continuing resolution,” to keep the government funded well into 2015.
