Four Insurers Sue Feds Over Withheld PPACA Risk Corridor Payments

Since May 2016, four insurers that launched plans sold on the Health Insurance Marketplace have filed lawsuits against the federal government protesting withheld risk corridor payments intended to help the new plans cover excess costs incurred by their population of members with previously unknown health risks and utilization patterns. The insurers are Health Republic Insurance Company of Oregon, Highmark, Moda Health, and Blue Cross Blue Shield North Carolina (BCBS NC).

The Patient Protection and Affordable Care Act of 2010 (PPACA) included provisions to encourage insurers to create Qualified Health Plans (QHPs) with a specific set of benchmark benefits that would . . .