Offbeat Court rules insurers not entitled to ObamaCare payments

19:36  14 june  2018
19:36  14 june  2018 Source:   thehill.com

Obamacare premiums set to soar in 2019

  Obamacare premiums set to soar in 2019 Insurers are proposing big premium hikes for Obamacare plans for 2019.Insurers in several states have requested large rate hikes for 2019, with many pointing to steps taken by President Donald Trump and Republicans in Congress as the main reasons why.

in a court ruling in an ongoing battle over whether the federal government owes billions to insurers who volunteered to participate in Obamacare lawsuit brought by an Illinois co-op, Land of Lincoln, ruling that the company was not entitled to the million in risk corridor payments that it expected.

The U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that Democratic state attorneys general can defend crucial ObamaCare payments to insurers , as President Trump has indicated he may cut them off.

  Court rules insurers not entitled to ObamaCare payments © Provided by The Hill A federal appeals court on Thursday ruled that insurers are not entitled to collect billions of dollars they claim the federal government owes as part of an ObamaCare program.

The three judge panel ruled 2-1, giving a win to conservatives who think the payments under ObamaCare's risk corridor program are illegal bailouts.

The lawsuit claimed two insurers were owed hundreds of millions of dollars from the program, which was created in 2014 to help cushion insurers from major losses during the early years of the law.

The court agreed with the Trump administration that insurers are not owed any money, because congressional Republicans passed legislation that required the program to be budget neutral. The federal government could only pay out what it took in and was not able to tap other sources of money to pay for insurers losses.

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Thanks to today's 6–3 Supreme Court decision, Obamacare 's crucial insurance subsidies have If the administration did lose at court , insurers would still be entitled to their subsidy payments under the law. But even if the court took a very strange view and ruled in favor of it, it’s hard to see it as an

There’s been a lot of bad news about rising Obamacare exchange premiums over the past few months. But things could get much worse for insurers (and consumers) if a court ruling brought by House In May, district court judge Rosemary Collyer sided with the House, deeming the payments illegal.

"Congress clearly indicated its intent here," the court ruled. "It asked GAO [the Government Accountability Office] what funding would be available to make risk corridors payments, and it cut off the sole source of funding identified beyond payments in. It did so in each of the three years of the program's existence."

The insurers are likely to appeal and seek a review by the full court, rather than just a panel. If that doesn't succeed, the next step would be an appeal to the Supreme Court.

Dozens of other insurers have filed similar lawsuits over the risk corridors. All told, insurers say the government owes them nearly $12 billion. The decision could set a precedent on the pending lawsuits.

The risk corridor program was intended to encourage insurers to participate in the ObamaCare exchanges. The idea was to establish a fund that would pay insurers who suffered heavy losses because they had too many sick people on their rolls and did not make enough money off premiums.

But the program struggled because too many insurers requested risk corridor money and too few paid into the fund. Insurers were left with a hole in their balance sheets on top of other ObamaCare-related problems they were already facing.

Analysis: Obamacare faces new life-threatening conditions .
The Trump administration just moved on two separate fronts that potentially spell the Affordable Care Act's endLoad Error

Source: http://us.pressfrom.com/news/offbeat/-155302-court-rules-insurers-not-entitled-to-obamacare-payments/

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