Health Affairs December 12, 2019
On December 10, 2019, the Supreme Court of the United States heard oral argument over whether insurers are entitled to more than $12 billion in unpaid risk corridor payments from 2014 to 2016. The lawsuit, Maine Community Health Options v. United States, stems from three consolidated cases, brought by four insurers: Maine Community Health Options, Moda Health Plan, Blue Cross and Blue Shield of North Carolina, and Land of Lincoln Mutual Health Insurance Company.
During the argument, the insurers asserted that the government made a clear and enforceable promise to make risk corridor payments, and that the failure to make those payments resulted in a “massive government bait-and-switch” that undermines the government’s credibility as a reliable business partner. The government...