Congressional Republicans are in talks with healthcare insurers to ease their financial suffering during the period between they repeal Obamacare and replace it, The Hill reported.
The repeal of President Barack Obama's signature legislation, formally known as the Affordable Care Act, is expected to get under way in January with the new Congress – and when it can be signed by incoming President Donald Trump who campaigned on the issue.
But the replacement might take time. And although the repeal will not be implemented immediately, the very fact it is being repealed could cause many insurers to leave the market altogether, since they already have been losing millions of dollars in the system.
That could leave the 10 million people enrolled through the exchanges without coverage, so GOP staffers are talking with insurance companies to find ways to keep them from suffering financially, according to The Hill, which quoted three Republican lobbyists.
The talks are reportedly in the early stages, and no specific proposals have been decided upon.
Anything perceived as a "bailout" of insurance companies could be politically costly for Republicans, but it is also possible, instead of provisions for insurers, regulations favorable to the industry might be introduced by the Trump administration.
One possibility could be something insurance companies have been calling for: a change in the formula to calculate payments to insurers under risk adjustment, which transfers funds from plans with lower-risk enrollees to those with higher-risk participants.
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