Massive shortfall in government payouts to insurance companies promises big premium increases

The government program to reimburse insurance companies with big losses as a result of signing up too many old and sick customers is massively short of funds and could cause some companies to either go under or get out of the Obamacare exchanges. The so-called "risk corridors" that forced profitable companies to pay into a fund that would be disbursed to companies who lost money is underfunded by 88% and will almost certainly lead to big changes in premiums and consumer choice on the exchanges. Washington Examiner: Obamacare insurers requested about $2.9 billion in risk corridor payments for the 2014 calendar year, but they only received $362 million, a mere 12 percent of what they asked for. The shortfall happened because insurers requested more than what was paid into the program. The result has been devastating for some insurers. WinHealth, which provides coverage in Wyoming, went into receivership last week because of a low risk corridor payment. It will...(Read Full Post)