Battle for Billions of Dollars in Risk-Corridor Payments Not Over Yet
Partner Nicole Elliott provided her insight for an article by Modern Healthcare covering the U.S. Court of Appeals for the Federal Circuit's court ruling that surprised legal and healthcare experts.
The court sided with the federal government, ruling that it doesn't owe health insurers $12.3 billion in payments under the risk-corridor program meant to offset losses during the early years of the Affordable Care Act exchanges. The ruling is a blow to insurers who have filed three dozen lawsuits over the program, including a class action involving 150 insurers.
"It's a textbook kind of definition of bait-and-switch and has fundamental ramifications for any number of federal programs where people are promised something and it induces behavior," said Ms. Elliott.
READ: Battle for Billions of Dollars in Risk-Corridor Payments Not Over Yet (Subscription required)