The U.S. Department of Justice has filed motions to dismiss two lawsuits by health care insurers who claim that they are owed millions under the Affordable Care Act.
The Hill reported that the insurers, Moda Healthcare and Blue Cross Blue Shield of North Carolina, have sued the federal government over a combined $338 million in health care payments they claim are overdue. But the Justice Department is arguing that the federal government isn’t responsible for those payments — and if it wins its argument, the decision could reverberate through the marketplace.
The lawsuits are both focused on a provision in the ACA known as the “risk corridors” program, which is aimed at cutting risks in the new marketplace. While passage of the ACA in 2010 brought the funding program into law, Republicans have since passed budget rules that restrict those payments, and the program has come up short — substantially so.
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