I'm sure that this is what most of the law's supporter's envisioned at passage. George Orwell would be proud of the use of the phrase "stabilization programs" to characterize the insurer bailouts. This is from
Matt Dunning at Business Insurance:
Analysts said the exchange-based products' negative effect on profitability would have been more pronounced without the support of stabilization programs built into the health care reform law to protect insurers from adverse risk selection and pricing volatility within the exchanges, including the transitional reinsurance and the temporary risk corridor programs — both of which will end in 2016 — and the permanent risk adjustment program.
Through the first half of the year, Humana Inc. reported $240 million in recoveries under the law's stabilization programs to offset medical claim costs and premium deficiencies within its exchange-based products. Aetna and Cigna Corp. reported recoveries of $50 million and $60 million, respectively.
