U.S. Supreme Court Holds Federal Government Accountable for ACA Promises
Highlights
A recent U.S. Supreme Court 8-1 ruling makes a profound statement on federal follow-through in adhering to its contractual and other commitments
The total losses to be reimbursed under the plain language of the Affordable Care Act was approximately $12.5 billion, but Congress never appropriated money to pay it
In overturning a divided Federal Circuit, the Supreme Court ruled that the ACA was unambiguous and that the federal government “shall pay” for the related marketplace losses
Emphasizing federal responsibility for its public/private arrangements – in healthcare and beyond – the U.S. Supreme Court ruled in Maine Community Health Options on April 27 that the United States would need to pay its $150 million liability to Illinois on behalf of defunct insurer Land of Lincoln Mutual Health, as well as three other insurers whose consolidated cases were heard after a four-year payment delay. Those cases involved Moda Health Plans and Blue Cross and Blue Shield of North Carolina, Land of Lincoln Mutual Health Insurance Co., and Maine Community Health Options.
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