House Republicans are mulling over plans to link an increase in the debt ceiling to the repeal of the insurance company bailout clauses in the Affordable Care Act.
At the annual GOP retreat being held this year in Cambridge, Maryland, Republicans are getting behind a movement to offer Democrats a deal that connects the cancellation of the “risk corridor” and reinsurance provisions in Obamacare to the raising of debt limits, according to Politico.
The “risk corridor provision” mandates that the government has to cover 80 percent of insurance company losses. The “reinsurance” fund collects $63 per insured person from insurers and self-insuring employers, which translates into around $20 billion over three years for the government to cover future losses from insurance companies.
Obamacare supporters say the clauses are an important part of the law as they will prevent potential spikes in premiums if healthcare insurance companies try to cover any losses, and will help to guarantee that these companies don’t go under.