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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

More Than 100 Immigrants Detained at an Illegal After-Hours Nightclub in Colorado

DON'T MISS

Visalia Police Captain Charged With Embezzlement, Theft

DON'T MISS

Autopsy Confirms Gene Hackman Died From Heart Disease

DON'T MISS

Iran Proposes Meeting With Europeans Before Next Talks With US, Diplomats Say

DON'T MISS

Trump to Sign Order Requiring List of Sanctuary Cities, States, Official Says

DON'T MISS

Saudi Arabia and Qatar to Pay Off Syria’s Debt to the World Bank

DON'T MISS

Pakistan Defense Minister Says Military Incursion by India Is Imminent

DON'T MISS

Trump Administration Allows Temporary Sales of Summertime Higher-Ethanol Fuel

DON'T MISS

US Judge to Hear Harvard’s Case Over Trump Funding Freeze in July

DON'T MISS

Madera Man Arrested After Armed Robbery, K-9 Assists in Capture

UP NEXT

Trump Says Putin May Not Want Peace and May Need to Be ‘Dealt With Differently’

UP NEXT

Only About Half of Republicans Say Trump Has Focused on the Right Priorities

UP NEXT

Israeli Airstrike Kills 10 People, Half of Them Children

UP NEXT

Shedeur Sanders Is Still Waiting for a Call as the NFL Draft Enters the Final Day

UP NEXT

Israel’s AI Experiments in the War in Gaza Raise Ethical Concerns

UP NEXT

Paul Skenes Strikes Out 9, Wins Duel With Yamamoto in Pirates’ Victory Over Dodgers

UP NEXT

Eovaldi Outlasts Verlander as Rangers Beat Giants

UP NEXT

Rams Take Oregon Tight End Terrance Ferguson in Second Round After Trading Out of First

UP NEXT

The Latest: Francis Is Remembered as a ‘Pope Among the People’ as He Is Laid to Rest

UP NEXT

Trump Now Doubts Putin Wants to End Ukraine War, a Day After Saying a Deal Was Close

Iran Proposes Meeting With Europeans Before Next Talks With US, Diplomats Say

2 hours ago

Trump to Sign Order Requiring List of Sanctuary Cities, States, Official Says

2 hours ago

Saudi Arabia and Qatar to Pay Off Syria’s Debt to the World Bank

2 hours ago

Pakistan Defense Minister Says Military Incursion by India Is Imminent

3 hours ago

Trump Administration Allows Temporary Sales of Summertime Higher-Ethanol Fuel

3 hours ago

US Judge to Hear Harvard’s Case Over Trump Funding Freeze in July

3 hours ago

Madera Man Arrested After Armed Robbery, K-9 Assists in Capture

3 hours ago

Huge Power Outage Paralyzes Parts of Spain and Portugal

3 hours ago

US Sanctions Target Deliveries of Oil and Gas to Houthis

3 hours ago

Putin Orders 3-Day Truce in Ukraine Next Month, Kremlin Says

3 hours ago

More Than 100 Immigrants Detained at an Illegal After-Hours Nightclub in Colorado

More than 100 immigrants suspected of being in the United States illegally were taken into custody early Sunday following a federal raid at ...

18 minutes ago

In this image taken from video released by the U.S. Drug Enforcement Administration, officers stop a patron from a nightclub where a raid occurred Sunday, April 27, 2025, in Colorado Springs, Colo. (U.S. Drug Enforcement Administration via AP)
18 minutes ago

More Than 100 Immigrants Detained at an Illegal After-Hours Nightclub in Colorado

Visalia Police Captain Luma Fahoum has been charged Friday, April 25, 2025, with embezzling nearly $50,000 from the department’s youth program and faces up to three years in local jail if convicted. (Tulare County DA)
1 hour ago

Visalia Police Captain Charged With Embezzlement, Theft

1 hour ago

Autopsy Confirms Gene Hackman Died From Heart Disease

A general view of Muscat, ahead of the awaited negotiations between U.S. and Iran, Muscat, Oman, April 25, 2025. (REUTERS/Ibraheem Abu Mustafa/File Photo)
2 hours ago

Iran Proposes Meeting With Europeans Before Next Talks With US, Diplomats Say

In his first hundred days in office, Trump has moved to strip legal immigration status from hundreds of thousands of people. On Sunday, the White House plastered across the lawnposters of people described as arrested illegal immigrants. (REUTERS/Evelyn Hockstein)
2 hours ago

Trump to Sign Order Requiring List of Sanctuary Cities, States, Official Says

A market in Old Damascus, Feb. 26, 2025. The civil war has taken a huge toll on the country’s economy, with industries decimated and infrastructure destroyed. (Kiana Hayeri/The New York Times)
2 hours ago

Saudi Arabia and Qatar to Pay Off Syria’s Debt to the World Bank

A Pakistan flag is seen on Pakistan Rangers' Post near the Attari-Wagah border crossing near Amritsar, India, April 26, 2025. India has suspended visa services to Pakistani nationals "with immediate effect" following an attack on tourists near Pahalgam in south Kashmir. (REUTERS/Anushree Fadnavis)
3 hours ago

Pakistan Defense Minister Says Military Incursion by India Is Imminent

Choices at the gas pump including ethanol or no ethanol gas are seen in Des Moines, Iowa, U.S., January 29, 2020. (REUTERS/Brian Snyder)
3 hours ago

Trump Administration Allows Temporary Sales of Summertime Higher-Ethanol Fuel

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

Search

Send this to a friend