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The Illegal Bailout!

Risk Corridor

The Risk Corridor program was supposed to hedge against the risk that insurers would suffer large losses from plans that are limited in how they can price premiums for age or illness. Profitable insurers would pay into a fund that would be redistributed to companies that took unforeseen losses. The Administration said that risk corridors would be budget-neutral because more insurers would benefit than buckle, and the fund might even produce a profit.

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