Department of Health and Human Services: Transitional Reinsurance Program – Not so fast diverting those 💲💲💲💲

Obamacare contains several provisions to protect insurers who take the risk of adverse selection. That is, enrolling people with existing health care issues. The very design of the Law creates the opportunity for people to game the system via the enrollment process thereby driving up premiums.

Not happy with the results of this process, HHS has sought its own interpretation to allow it to give more money to insurers and thus mitigate premium increases. 

Not so fast‼️‼️says the General Accounting Office. It’s hell when poorly  conceived programs and promises don’t work out. 

We have the same philosophy through out Obamacare and the people who manage it. Rising premiums aren’t a real problem because most people have their premiums subsidized; adverse selection isn’t a real problem because we will simply give insurance companies. In today’s political environment it appears nothing is real. 

The Department of Health and Human Services (HHS) administers the 3-year transitional reinsurance program established under section 1341 of the Patient Protection and Affordable Care Act. (Obamacare) 

The program, which is financed by statutorily required contributions from participating health insurance issuers and group health plans, makes payments to eligible issuers, to stabilize health insurance premiums and encourage issuer participation in the health insurance markets. 

Section 1341 designates a specified amount of collections from issuers for reinsurance payments and also directs the deposit of a specified amount of collections in the general fund of the United States Treasury (Treasury). HHS asserts that when collections fall short of the amounts specified in statute the agency has authority to allocate all collections for reinsurance payments, making deposits in the Treasury only if collections reach the amounts specified for reinsurance payments in section 1341. 

As [explained below], we conclude that HHS lacks authority to ignore the statute’s directive to deposit amounts from collections under the transitional reinsurance program in the Treasury and instead make deposits to the Treasury only if its collections reach the amounts for reinsurance payments specified in section 1341.  

This prioritization of collections for payments to issuers over payments to the Treasury is not authorized.  The agency must give effect to the extent possible to all of section 1341, and, therefore, is required to collect and deposit amounts for the Treasury, regardless of whether its collections fall short of the amounts specified in statute for reinsurance payments.<

Source: : Department of Health and Human Services: Transitional Reinsurance Program


  1. Let’s see. Transitional reinsurance ends in 2016. The Obama Administration ends in 2016. Coincidence.

    Assuming success, I think that once I scale back employment to minimal wages, that I may move to Colorado , to get free health care subsidized by CO resident/ taxpayers – as they pursue single, government payor – I don’t wanna pay my Medicare part B, D and other such baloney


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