June 18, 2014 - UHLC Foundation Professor Seth J. Chandler testified on the Affordable Care Act today before the U.S. House Committee on Oversight and Government Reform.
Chandler discussed two recent Obama administration decisions in the implementation of risk corridors that he says push the ratio away from insurer profitability.
"I am concerned that a combination of insurer losses and the recent Executive Branch changes to the Risk Corridors program will result in this provision costing the federal government more than budgeted or anticipated," Chandler said in his testimony. "I am equally concerned that the contrary predictions of the Congressional Budget Office are difficult to reconcile with mathematical reality."
Chandler challenged the CBO's analysis that concluded Risk Corridors would net the government $8 billion. In his testimony, Chandler said in his view it is more likely that over the three years in which it is projected to be in effect, Risk Corridors will add significantly to the cost of Title I of the Affordable Care Act.
Seth Chandler's full written testimony may be read here.
Video of the hearing may be found here.