Ryan says Obamacare could lead to massive bailouts for insurance companies. Ryan: Debt talks may target ACA

SAN ANTONIO— Obamacare could make its way into the debt ceiling debate.

Speaking here Thursday, Rep. Paul Ryan (R-Wis.) said Republicans are considering getting rid of “insurance company bailouts” when they lift the nation’s borrowing cap in the next few months


“There are issues with Obamacare,” Ryan said. “A lot of folks don’t realize there could be some massive insurance company bailouts in the near future with Obamacare that a lot of taxpayers probably didn’t know about that we don’t want to see happen. That’s one of the issues thats in the realm of possibility. There are a lot of things…that are being discussed but its just not in our interest to negotiate in the media.”

Republicans have already introduced bills targeting two complex pieces of Obamacare — called the reinsurance fund and risk corridors – that they say amount to bailout of the insurance companies, likening them to the “too big to fail” policies of the banking crisis.

Both policies are designed to limit the risk insurers have to take and try to prevent premium spikes. Backers of the health law say the provisions are needed to help insurance companies balance the cost of accepting all patients, some of whom are very expensive. The provisions are only designed to last three years until the insurance pools are more balanced.

The Obama administration said late last year that they might make adjustments to the risk corridors to further help insurers adjust to the changes they’ve made to the health law since its flawed rollout in October.

But Republicans want to repeal the provisions entirely. They say the Obama administration is using both policy tools to pump up insurance companies that might have faltered under Obamacare.