HHS may use ‘obscure fund’ to settle ACA risk adjustment suits

The federal government could offer a settlement to insurers suing the government over unpaid risk corridor payments, despite Congress’ best efforts to quash any potential deal, reports The Washington Post.

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Department of Justice officials have privately told some health plans owed money by the federal government that DOJ is eager to negotiate a broad settlement, which could end up offering payments to about 175 health plans selling coverage on Affordable Care Act marketplaces, according to the article.   

To circumvent a recent congressional ban on the use of HHS money to pay insurers, officials would draw money from an obscure Treasury Department fund intended to cover federal legal claims.

HHS and DOJ officials hope the move could help stem the current exodus of health plans from government insurance exchanges across the country.

The federal government currently owes $2.5 billion to insurers in risk corridor payments.

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