House Republicans revealed an amendment to their healthcare bill that allots $15 billion over nine years to help subsidize the cost of sick patients in the individual market.
Dubbed the "Federal Invisible Risk Sharing Program," the fund would be paid out to insurers beginning in 2018 through the end of 2026. The amendment allows HHS to determine how the funds would be administered in the first two years of the program, and then would have states take over administration in 2020.
It appears to be similar to the ACA's temporary, three-year reinsurance program, which also aimed to bring down premium prices by subsidizing the cost of sicker enrollees. The reinsurance program under the ACA was more generous than the Federal Invisible Risk Sharing Program would be, however. According to Kaiser Family Foundation, the government shelled out $7.9 billion in 2014 and $7.8 billion in 2015 in resinsurance payments.
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