Maine co-op’s risk corridor lawsuit gets green light

A federal judge ruled Dec. 2 nonprofit health plan Community Health Options can proceed with its lawsuit against the federal government over payments it claims it is owed under the ACA’s risk corridors program, reports Maine Public.

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CHO filed suit against the government in August seeking $22.9 million in risk corridors payments. The suit is one of 13 pending cases against the federal government from insurance companies demanding the government fulfill its financial obligation under the health law.

Senior Judge for the U.S. Court of Federal Claims James Merow rejected the Department of Justice’s request all risk corridors suits be delayed temporarily as the DOJ assembles legal defense for all 13 suits.

“Thirteen [cases] does not strike this court as an overwhelming number of cases,” Mr. Merow wrote in his ruling. “Moreover, if those cases are indeed as related as the government suggests, the same arguments and legal authority should be applicable to each.”

DOJ has until Jan. 13 to respond to CHO’s motion for summary judgment, according to the article.

More articles on payer issues: 

Aetna lawyer: DOJ’s antitrust arguments in Humana case address ‘a pretend world’
Judge declines federal request to freeze payer’s risk corridor lawsuit
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