High court rules insurers can collect $12B under health care law

The Supreme Court ruled Monday that insurance companies can collect $12 billion from the federal government to cover their losses in the early years of the health care law championed by President Barack Obama.

Insurers are entitled to the money under a provision of the “Obamacare” health law that promised the companies a financial cushion for losses they might incur by selling coverage to people in the marketplaces created by the health care law, the justices said by an 8-1 vote.

The program only lasted three years, but Congress inserted a provision in the Health and Human Services Department’s spending bills from 2015 to 2017 to limit payments under the “risk corridors” program. Both the Obama and Trump administrations had argued that the provision means the government has no obligation to pay.

The companies cite HHS statistics to claim they are owed $12 billion.

The case is separate from a challenge to the health care law that the court has agreed to hear in its term that begins in October.

This story will be updated.

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2 thoughts on “High court rules insurers can collect $12B under health care law

  1. Great. They can now use these funds to help pay (instead of taking a “denial first policy”) Business Income Interruption claims on behalf of the COVID 19 mandatory business shut down/quarantine.

    Most business owners have been paying BI premiums for years without any benefits and now when they need the benefits the most, insurers are saying no coverage. Claims are getting “denial first” reactions from their insurers all over the country for BI even when there are no exclusions for virus/pandemics in their BI coverage. My prediction is that unless insurers pony up and pay the much deserved claims, then you will see one of the largest class action lawsuits in history.

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