Insurance Companies Looking For Billions Of Dollars In Front Of Supreme Court

An Obamacare argument is in front of the Supreme Court this week. Health insurance companies in Maine, Alaska, and elsewhere around the country say they are owed a lot of money by the federal government, roughly $12 billion, because of a deal struck under the Affordable Care Act.

The Trump administration says it does not have to pay. A legal expert says this case could have a massive impact beyond health care.

When the Affordable Care Act became law, the government tried to incentivize companies like Moda Health Plan, which served Alaska, and Maine Community Health Options to sell insurance on the Obamacare market.

It was a new market filled with uncertainty. Katie Keith, a health care legal expert from Georgetown University says the government vowed to pay out insurers who suffered financial losses.

“The idea there was to make sure insurance companies felt comfortable coming into this new program,” said Keith.

Some companies took big losses, but also lost their safety net. A Congressional funding bill passed after the initial agreement limited the amount of compensation for these insurers.