Basically, today’s worst-case scenario is that HealthCare.gov takes months to fix and the mandate is delayed until 2015, resulting in widespread adverse selection. Insurers wouldn’t recoup all losses, but the risk corridor program provides their bottom line with a substantial buffer. Importantly, it doesn’t need to be budget neutral; if the math demands it, the government can pay out more than it collects through the program. This could be expensive—the CBO scored the health law as though risk corridors were budget neutral—but it could also be offset by foregone subsidies.
But funds were never appropriated to make up the cosst if the ‘risk prevention corridors’ were not revenue neutral.
As far as I can see- and the law is difficult to understand (to say the least)- any funds to for the ‘corridor’ would have to be appropriated by congress.
Which the Dems would love to run on in 2014 and do when they’re put back in control of the House.