ACA's Insurance Company Bailouts

1. Patient Centered Outcomes Research Institute Fee
2. Transitional Reinsurance Fee
3. Health Insurance Tax

These are three (3) of the more than 18 new taxes, fees, and deduction changes that have been created/implemented in order to fund the Affordable Care Act (ACA), aka Obamacare.  The later two (2) have not yet been imposed/collected, but the bell rings this year (2014) for their collection and remittance to Uncle Sam.  This week I thought I would delve into the ear marking of some of this revenue, and what many are calling the ACA's "insurance company bailout". 

The ACA contains three (3) separate and distinct "bailout programs" embedded within it's 2,700 pages.  They are the Reinsurance Program (temporary), Risk Adjustment Mechanism, and Risk Corridor.  In short, each program is designed to protect insurance companies that participate in the health care marketplaces/exchanges, from costs and losses.  The Congressional Budget Office (CBO) has projected the ACA to direct some $1,071,000,000,000.00 (that's trillion with a T) over the 10 year period from 2014 - 2023, to eligible insurers.  Here's a brief description of each of these programs.

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