A federal court al­lowed health in­sur­ers to sue

Modern Healthcare - - Late News -

to­gether as a class in chal­leng­ing the federal gov­ern­ment’s fail­ure to pay cost-shar­ing re­duc­tion pay­ments. Judge Mar­garet Sweeney of the U.S. Court of Federal Claims re­jected the federal gov­ern­ment’s ar­gu­ment that in­sur­ers shouldn’t re­ceive class-ac­tion sta­tus be­cause their al­leged dam­ages would vary, since some in­sur­ers were not hurt by the CSR cutoff be­cause they raised pre­mi­ums to make up for los­ing the sub­si­dies. As a re­sult, the gov­ern­ment paid higher premium tax cred­its. The judge said no statute pro­hibits in­sur­ers from rais­ing pre­mi­ums to off­set the loss of CSRs.

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