Topic: Risk Corridors

The Trump administration has stopped $10 billion in "risk adjustment" payments to insurance companies under the Affordable Care Act. The move follows a court ruling regarding the calculation of these payments. The hosts suggest this policy, combined with allowing insurance sales across state lines, is intended to increase competition and lower rates.

The discussion focuses on "risk corridors," a hidden mechanism in the Affordable Care Act designed to bail out insurance companies. The hosts explain that while Marco Rubio curtailed some of these payments, taxpayers are still on the hook for billions. They argue the system was poorly designed and serves as a massive transfer of wealth to insurers.

Senator Barbara Boxer attempts to spin Bill Clinton's criticism of Obamacare by blaming Republicans for blocking "risk corridor" payments. These payments were intended to subsidize insurance companies that lost money by taking on high-risk patients. The hosts deconstruct the legislative battle involving Marco Rubio that limited these government payouts to major insurers.

President Obama appeared on the comedy web series "Between Two Ferns" with Zach Galifianakis to encourage young people to sign up for the Affordable Care Act before the enrollment deadline. White House Press Secretary Jay Carney touted the video's viral success as a primary referral source for Healthcare.gov. However, analysts point to Section 1342 of the ACA, the "risk corridor" provision, as a taxpayer-funded bailout for insurance companies facing shortfalls.