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 4 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

RIP, Basketball and Broadcasting Great, Supreme ‘Deadhead’ Bill Walton, 71

DON'T MISS

Bulldogs to Face UC Santa Barbara in NCAAs After Amazing MW Baseball Comeback

DON'T MISS

Newgarden Goes Back-to-Back at Indy 500 for Roger Penske’s Record-Extending 20th Win

DON'T MISS

Netanyahu Acknowledges ‘Tragic Mistake’ After Rafah Strike Kills Dozens of Palestinians

DON'T MISS

This Is the Rare Financial Merger That Will Help Working People and Small Business

DON'T MISS

Amal Clooney Is Among Legal Experts Who Recommended War Crimes Charges in Israel-Hamas War

DON'T MISS

Fresno Nears End of Truck Route Study. Residents & Businesses Aren’t Sure of the Impacts.

DON'T MISS

The Cost to Inform California Voters? $118,000 a Page for Official Guide

DON'T MISS

Top Russian Military Officials Are Being Arrested. Why Is It Happening?

DON'T MISS

Delta Tunnel Water Project May Finally Be Nearing a Historic Decision

UP NEXT

CA Senate Passes Hospital Seismic Compliance Bill: What’s the Impact on Local Hospitals?

UP NEXT

UC Berkeley Faces a Summer of Discontent as Gaza Protesters Remain Steadfast

UP NEXT

Man Sentenced to 25 Years for Teaching Bomb-Making to Person Targeting Authorities

UP NEXT

UAW Files Objection to Mercedes Vote, Accuses Company of Intimidating Workers

UP NEXT

Fresno Man Charged with Throwing Meth into Mendota Prison Yard

UP NEXT

American Airlines Retreats After Blaming a 9-Year-Old for Not Seeing a Hidden Camera in a Lavatory

UP NEXT

Portland Nurse Returns Home After Treating Gaza Burn Victims

UP NEXT

RNC HQ Evacuated: Blood Vials Addressed to Trump Prompt Security Alert

UP NEXT

Ex-Employee Kills 2, Injures 3 in Suburban Philadelphia Linen Company Shooting

UP NEXT

Search and Rescue Ongoing After Iowa Tornado; 1 Dead

Netanyahu Acknowledges ‘Tragic Mistake’ After Rafah Strike Kills Dozens of Palestinians

6 hours ago

This Is the Rare Financial Merger That Will Help Working People and Small Business

7 hours ago

Amal Clooney Is Among Legal Experts Who Recommended War Crimes Charges in Israel-Hamas War

7 hours ago

Fresno Nears End of Truck Route Study. Residents & Businesses Aren’t Sure of the Impacts.

8 hours ago

The Cost to Inform California Voters? $118,000 a Page for Official Guide

1 day ago

Top Russian Military Officials Are Being Arrested. Why Is It Happening?

1 day ago

Delta Tunnel Water Project May Finally Be Nearing a Historic Decision

1 day ago

CA Senate Passes Hospital Seismic Compliance Bill: What’s the Impact on Local Hospitals?

2 days ago

Take This Memorial Day Quiz Before Warming up the Grill

2 days ago

Hate Wasting Money? Use These 7 Hacks to Feed Your Family for Less

2 days ago

RIP, Basketball and Broadcasting Great, Supreme ‘Deadhead’ Bill Walton, 71

Bill Walton, who starred for John Wooden’s UCLA Bruins before becoming a Hall of Famer for his NBA career and one of the biggest stars...

4 hours ago

4 hours ago

RIP, Basketball and Broadcasting Great, Supreme ‘Deadhead’ Bill Walton, 71

5 hours ago

Bulldogs to Face UC Santa Barbara in NCAAs After Amazing MW Baseball Comeback

6 hours ago

Newgarden Goes Back-to-Back at Indy 500 for Roger Penske’s Record-Extending 20th Win

6 hours ago

Netanyahu Acknowledges ‘Tragic Mistake’ After Rafah Strike Kills Dozens of Palestinians

Photo of person standing in front of a Capitol One building in San Francisco
7 hours ago

This Is the Rare Financial Merger That Will Help Working People and Small Business

7 hours ago

Amal Clooney Is Among Legal Experts Who Recommended War Crimes Charges in Israel-Hamas War

8 hours ago

Fresno Nears End of Truck Route Study. Residents & Businesses Aren’t Sure of the Impacts.

1 day ago

The Cost to Inform California Voters? $118,000 a Page for Official Guide

MENU

CONNECT WITH US

Search

Send this to a friend