Paul Clement Paul Clement,representing four insurance companies, argued that theappropriation riders did not repeal the program and left intact a"clear and enforceable promise required to make the Affordable CareAct work." (Credit: Diego M. Radzinschi/ ALM)

The U.S. Justice Department on Tuesday faced a skeptical U.S.Supreme Court over arguments that the governmenthad no obligation to pay $12 billion in losses incurred byinsurance companies that agreed to participate in a federal programto provide health insurance for high risk individuals through theAffordable Care Act.

The Affordable Care Act established a "risk corridors" programstating that the government "shall pay" insurers a portion of theirlosses for three years beginning in 2014 if their costs were higherthan anticipated. Insurers were obligated to pay a portion of anysavings into the program if costs were lower than expected.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Marcia Coyle

Marcia Coyle, based in Washington, covers the U.S. Supreme Court. Contact her at [email protected]. On Twitter: @MarciaCoyle