Judge orders federal government to pay Moda Health $214M in risk-corridor lawsuit

The U.S. Court of Claims ruled on behalf of Portland, Ore.-based Moda Health, saying the federal government must pay Moda $214 million, Oregon Live reports.

Here are four notes:

1. In an opinion, Judge Thomas Wheeler said the government agreed to pay Moda millions under the risk-corridor program and therefore "the court directs the government to fulfill that promise. After all, to say to [Moda], 'The joke is on you. You shouldn't have trusted us,' is hardly worthy of our great government."

2. The government fell short in 2014, only paying Moda $11 million despite Moda saying the government owed the payer millions of dollars.

3. The payer received nothing in 2015 and 2016 for its participation in the risk-corridor program.

4. In October 2016, the Department of Justice filed motions to dismiss the lawsuit Moda and other payers filed. Since February 2015, multiple payers have sued the government for failing to follow through with its risk-corridor payments. On June 3, 2016, BlueCross BlueShield of North Carolina filed a suit seeking $128 million in owed payments from 2014.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast