The Department of Justice filed two motions to dismiss a lawsuit brought on by Moda Healthcare and Blue Cross Blue Shield of North Carolina for losses they suffered under the Affordable Care Act, according to benefits pro.
Here are four things to know:
1. Moda Healthcare and Blue Cross Blue Shield of North Carolina filed a $338 million lawsuit that claims the government failed to pay the insurers money owed under the ACA's risk-corridor program.
2. Moda claims the government owes the payer $191 million from 2014, and BCBS of North Carolina says it is owed $147 million.
3. The DOJ says the government should not be held responsible for the payments as Congress had "directly spoken" about limiting the use of federal dollars in the risk-corridor program, and the government did not give a definitive deadline for repaying insurers.
4. In its filing, the DOJ stated, "Under Moda's interpretation, HHS would be the uncapped insurer of the insurance industry itself. Congress did not intend that result."
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