Report: Obama administration failed to follow health law
The Obama administration failed to follow the president’s health care law in a $5 billion dispute over compensating insurers for high costs from seriously ill patients, according to a report Thursday by the Government Accountability Office, the investigative arm of Congress.
At issue is how the administration has handled a little-known, but important “transitional reinsurance” program. Working in the background of the law’s coverage expansion, the three-year program collects fees from employer and other private health insurance plans, channeling the money to health plans that face large claims for treating patients with catastrophic medical problems.
The law directed that the fee collect $25 billion from 2014-2016 and $5 billion would go directly to the Treasury. When fee collections fell short, the Health and Human Services Department failed to send a share of money to the Treasury, saying it would do so later as more money came in.