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Megan McArdle

Obamacare Offers More Goodies for Insurers

Has the Obama administration found a new way to make insurers back Obamacare?

I wrote yesterday that the administration is wooing insurers to stay the course on the Patient Protection and Affordable Care Act. It's been reported that the administration was looking at ways to tweak the risk corridor and reinsurance program -- a system of side payments meant to help defray the transition costs as insurers sold policies to an unfamiliar market -- in order to give the insurers more money. I was skeptical that it would be able to do much with the risk corridors, because the amounts they're allowed to pay are written into the law. But it may have found more fertile ground in risk-adjustment payments, another reinsurance mechanism:

Here's the new rule in Federal Register-ese: