The U.S. Supreme Court has ruled that the federal government has to pay $12 billion to insurers that had enrolled in the Affordable Care Act’s “risk corridor” program.
The ruling reversed a lower court decision that had exempted the government from paying insurers because the program didn’t bring in enough funds to cover the payments.
“We conclude that §1342 of the Affordable Care Act established a money-mandating obligation, that Congress did not repeal this obligation, and that petitioners may sue the Government for damages in the Court of Federal Claims,” Justice Sonia Sotomayor wrote in the court’s 8-1 opinion.
Justice Samuel Alito was the lone dissenter and said he didn’t think there was a basis for action under the Tucker Act, as the majority had ruled.
Alito further said that the ruling “provided a massive bailout for insurance companies that took a calculated risk and lost.”
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