Department of Health and Human Services Lines Pockets of Health Insurers with ObamaCare Reinsurance Program

FreedomWorks today echoed calls from Sens. Ben Sasse (R-Nebr.) and Ron Johnson (R-Wis.) for answers from the Department of Health and Human Services (HHS) about the prioritization of payments to health insurance companies over taxpayers through the controversial ObamaCare reinsurance program.

Through its implementation of ObamaCare, the Department of Health and Human Services (HHS) has arbitrarily prioritized payments to insurers over payments to taxpayers. Anticipating market disruptions following the disastrous implementation of ObamaCare, the transitional reinsurance program was designed to counteract significant new spending under the 2010 law and to “stabilize premiums in the individual [health insurance] market.” Instead, the money was used to line the pockets of powerful and well-connected insurers.

“Taxpayers were supposed to see $5 billion deposited into the U.S. Treasury from mandatory collection amounts acquired from 2014 through 2016,” said FreedomWorks CEO Adam Brandon. “Instead, HHS is telling Americans that they’ll only get to see a fraction – $500 million – of that amount. It’s unacceptable.”

“Nitpicking statute language and deciding what areas are ‘permissive’ enough to allow a very liberal interpretation of Section 1341’s restrictions in order to cheat Americans from funds is cronyism at its worst. If HHS failed to collect the mandatory amount for both 2014 and 2015, the taxpayer shouldn’t pick up the tab,” Brandon continued.“ObamaCare’s already a continued disappointment, exceeding projected costs and failing Americans; even a band-aid meant to compensate for its burdensome costs isn’t a temporary solution we can depend on.”

“We support Sens. Sasse and Johnson and Governmental Affairs Committee’s demand for answers. As the Congressional Research Service, an independent and nonpartisan body, determined, HHS’s interpretation of Section 1341 is in conflict with the statute’s plain language. The government needs to be held responsible for wasteful spending and for its failure to prioritize American citizens over insurance companies,” Brandon concluded.

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