Insurers grapple with big Obamacare funding shortfall

By Robert King, Robert King

Published December 20, 2015

!--StartFragment-->

Obamacare insurers have been struggling with a shortfall of federal funds, which could lead to higher premiums for Obamacare plans, experts said.

The Affordable Care Act set up a risk corridor program to help insurers that take on too many sickened or older Americans. The law requires insurers to accept every applicant regardless of health status or pre-existing condition.

The program works by having insurers whose profits reach past a certain threshold paying into it, and the administration paying out to insurers that have big losses.