Supreme Court Rules for Health Insurers

Federal reimbursements may be as high as $12 billion.

In an 8-1 ruling Monday, the Supreme Court said that health insurance companies are owed reimbursement.

Through a program called “risk corridors,” insurers that made a profit from the Affordable Health Care Act exchanges in the first three years were required to provide some of their earnings to insurers that lost money. However, the losses exceeded profits by $12 billion, and, under the law, the federal government was supposed to make up that difference.

Although Congress has passed annual appropriations bills containing riders that forbid the federal government from paying insurers under the risk corridor, the majority of the Court ruled that Congress did not “repeal the [risk corridor] obligation through its appropriations riders.” That will likely result in insurers receiving payouts from the U.S. Treasury.

The lone dissent in the ruling came from Justice Samuel Alito, who said that insurers were not entitled to bring the lawsuit under federal law.

As the Lord Leads, Pray with Us…

  • For members of the Supreme Court as they continue to hear cases remotely and make their rulings on cases previously heard.
  • About the additional loss of around $12 billion that the federal government must pay.

Sources: Washington Examiner, SCOTUS Blog


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