Risk Corridors Litigation: The Gift That Keeps On Giving
Health Affairs May 15, 2020
On April 27, 2020, the Supreme Court ruled, in a 8-1 decision, that insurers were entitled to more than $12 billion in unpaid risk corridors payments. One might think that such a resounding decision would close this chapter in Affordable Care Act (ACA) litigation. But things are rarely so simple with the ACA.
As discussed in more detail here, there are several open questions about what comes next. One key question was whether the government or insurers would dispute the amounts owed in unpaid risk corridors payments. Another is how the payments, once received, will be treated in medical loss ratio calculations and whether the Department of Health and Human Services (HHS) will issue new regulations or guidance to answer...