A coalition of insurance companies told the Supreme Court on Tuesday that the government must pay out $12 billion to help defray losses incurred on the Affordable Care Act (ACA) exchanges.
by Kevin Daley
The Supreme Court seemed to agree Tuesday with arguments that Congress must pay out some $12 billion to health insurance companies as part of a program meant to mitigate risks caused by the Affordable Care Act (ACA).
The companies hope to collect those funds pursuant to a provision of the ACA that says the government “shall pay” insurers who incurred losses on the Obamacare exchanges. Despite that promise, Congress has not appropriated funds to compensate insurers.
“This case involves a massive government bait-and-switch and the fundamental question of whether the government has to keep its word after its money-mandating promises have induced reliance,” said Paul Clement, who represents the insurance companies before the high court.