In an effort to prevent taxpayer-funded bailouts of failing insurance companies under ObamaCare, Rep. Leonard Lance (R-NJ) introduced the Taxpayer Bailout Protection Act on Wednesday.
In essence, the bill mandates that any funds that go through the Affordable Care Act’s risk corridor program must remain revenue neutral. This means that any payments made to reimburse insurance companies for losses they incur cannot be funded by tax dollars.
Lance said the risk corridor program has raised serious questions and could end up costing American taxpayers since it’s being managed outside the Congressional appropriations process.
“Taxpayers need to be protected from more bailouts, and we need to ensure that the administration is following the letter of the law,” Lance continued. “The Taxpayer Bailout Protection Act will protect taxpayers from a potential financial liability.”
A companion bill is scheduled to be introduced soon in the Senate by Sen. Bill Cassidy (R-LA).
“I am pleased to join my colleague and friend Sen. Cassidy again as we move this bicameral effort to tackle the two pressing elements of the risk corridor program: protecting taxpayers from more bailouts and ensuring that the administration is following the letter of the law,” Lance concluded.