Risk corridor program

Supreme Court to hear case on ACA payments to insurers

Marble steps leading up to the Supreme Court of the United States
The Supreme Court will hear arguments why health insurers are entitled to ACA reimbursements. Photo: Aurora Samperio/NurPhoto via Getty Images

Health insurers will get a chance to persuade the Supreme Court that they're entitled to roughly $12 billion in payments under the Affordable Care Act. A lower court ruled against the insurers last year, but the Supreme Court said Monday that it will hear their appeal.

The big picture: The disputed payments involve the ACA's "risk corridors" program, designed to help stabilize the law's insurance markets through their infancy. Insurers say the government still owes them billions, but the Trump administration says Congress has forbidden those payments.

Insurers lose high-stakes ACA lawsuit

A laptop open to HealthCare.gov
Photo: Joe Raedle/Getty Images

A federal appeals court today shot down insurance companies’ claim that the federal government owes them about $12 billion from an Affordable Care Act program.

The intrigue: Insurers lost billions of dollars when Congress put the brakes on a program that had been designed to help stabilize the ACA in its early years. Those losses contributed to driving some new insurers out of business — but that’s just the way it is, the court said today.