Please ensure Javascript is enabled for purposes of website accessibility
Court Rules Insurers Can Collect $12B for Obamacare Losses
gvw_ap_news
By Associated Press
Published 5 years ago on
April 27, 2020

Share

WASHINGTON — The Supreme Court ruled Monday that insurance companies can collect $12 billion from the federal government to cover their losses in the early years of the health care law championed by President Barack Obama.

Insurers are entitled to the money under a provision of the “Obamacare” health law that promised the companies a financial cushion for losses they might incur by selling coverage to people in the marketplaces created by the health care law, the justices said by an 8-1 vote.

Insurers are entitled to the money under a provision of the “Obamacare” health law that promised the companies a financial cushion for losses they might incur by selling coverage to people in the marketplaces created by the health care law, the justices said by an 8-1 vote.

The program only lasted three years, but Congress inserted a provision in the Health and Human Services Department’s spending bills from 2015 to 2017 to limit payments under the “risk corridors” program. Both the Obama and Trump administrations had argued that the provision means the government has no obligation to pay.

But Justice Sonia Sotomayor said in her opinion for the court that the congressional action was not sufficient to repeal the government’s commitment to pay. “These holdings reflect a principle as old as the Nation itself: The Government should honor its obligations,” Sotomayor wrote.

In dissent, Justice Samuel Alito wrote that the court’s decision “has the effect of providing a massive bailout for insurance companies that took a calculated risk and lost. These companies chose to participate in an Affordable Care Act program that they thought would be profitable.”

The companies, which sold insurance in Alaska, Illinois, Maine, North Carolina, Oregon and Washington, cite HHS statistics to claim they are owed $12 billion.

The case is separate from a challenge to the health care law that the court has agreed to hear in its term that begins in October.

DON'T MISS

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

DON'T MISS

President Trump’s Tariffs Could Be the Political Tipping Point

DON'T MISS

Order That Kept Water in the Kern River Reversed by 5th District Court of Appeal

DON'T MISS

As Dem Candidates for Governor Increase, They Wait for Harris to Decide

DON'T MISS

No More Calling ‘Shotgun?’ CA Could Ban Teens From Riding in Front Seat

DON'T MISS

Protests Planned All Over the World Aimed at Donald Trump and Elon Musk

DON'T MISS

Average US Rate on a 30-Year Mortgage Dips to 6.64% for the Second Drop in 2 Weeks

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Christopher Robert Sharkey

DON'T MISS

Fresno Man Arrested in Armed Robbery After Search Warrant Executed

DON'T MISS

Diehard Baseball Fans in Sacramento Welcome Athletics and Hope They Stay Awhile

UP NEXT

Trump Proposes Tax Deduction for Auto Loan Interest on US-Made Cars

UP NEXT

Western US Sees Sharp Increase in Extreme Weather Impact

UP NEXT

7-Year-Old Girl Was Killed by a Falling Boulder at a Lake Tahoe Ski Resort

UP NEXT

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

UP NEXT

Lakers Hold Off Rockets With 6 3-Pointers Apiece From Dorian Finney-Smith, Gabe Vincent

UP NEXT

Athletics Bat Boy Stewart Thalblum Takes Down Drone in Left Field

UP NEXT

NFL Postpones Tush Push Decision but Passes Other Rule Changes, AP Source Says

UP NEXT

March Madness: It’s South Carolina vs. Texas and UCLA vs. UConn in Women’s Final Four

UP NEXT

Major Layoffs Begin at Health Agencies That Track Disease and Regulate Food

UP NEXT

U.S. Bank Executive Terry Dolan Dies in Plane Crash Near Minneapolis

As Dem Candidates for Governor Increase, They Wait for Harris to Decide

1 hour ago

No More Calling ‘Shotgun?’ CA Could Ban Teens From Riding in Front Seat

1 hour ago

Protests Planned All Over the World Aimed at Donald Trump and Elon Musk

2 hours ago

Average US Rate on a 30-Year Mortgage Dips to 6.64% for the Second Drop in 2 Weeks

2 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Christopher Robert Sharkey

2 hours ago

Fresno Man Arrested in Armed Robbery After Search Warrant Executed

2 hours ago

Diehard Baseball Fans in Sacramento Welcome Athletics and Hope They Stay Awhile

3 hours ago

Carbon Monoxide Was Cause of Death of Brett Gardner’s Teen Son, Officials Confirm

3 hours ago

Bettors Back Duke Men and UConn Women for National Championships

3 hours ago

Flores Homers, Matos and Wade Also Go Deep to Help Giants Cap Sweep of Astros

4 hours ago

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

WASHINGTON — The Pentagon’s acting inspector general announced Thursday that he would review Defense Secretary Pete Hegseth’s use of the Sig...

5 minutes ago

U.S. Secretary of Defense Pete Hegseth attends a joint news conference with Japan's Defense Minister Gen Nakatani at the Ministry of Defense in Tokyo Sunday, March 30, 2025. (Kiyoshi Ota/Pool Photo via AP)
5 minutes ago

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP/Evan Vucci)
1 hour ago

President Trump’s Tariffs Could Be the Political Tipping Point

1 hour ago

Order That Kept Water in the Kern River Reversed by 5th District Court of Appeal

1 hour ago

As Dem Candidates for Governor Increase, They Wait for Harris to Decide

1 hour ago

No More Calling ‘Shotgun?’ CA Could Ban Teens From Riding in Front Seat

On April 5th, the "Hands Off!" group will hold an international protest, including a Fresno demonstration at Fashion Fair Mall, urging Donald Trump and Elon Musk to stop their influence over vital social programs and rights. (Hands Off!)
2 hours ago

Protests Planned All Over the World Aimed at Donald Trump and Elon Musk

A for sale sign stands outside a home on the market in the Alamo Placita neighborhood Tuesday, Aug. 27, 2024, in central Denver. (AP File)
2 hours ago

Average US Rate on a 30-Year Mortgage Dips to 6.64% for the Second Drop in 2 Weeks

Christopher Robert Sharkey is Valley Crime Stoppers' Most Wanted Person of the Day for April 3, 2025. (Valley Crimes Stoppers)
2 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Christopher Robert Sharkey

Help continue the work that gets you the news that matters most.

Search

Send this to a friend