DOJ files to dismiss $338M risk-corridors suits from BCBS, Moda Health

The Department of Justice filed motions to dismiss two lawsuits filed by insurers seeking payments under the Affordable Care Act's risk corridors program.

DOJ requested the court reject lawsuits filed over the unpaid payments by Moda Healthcare and BlueCross BlueShield of North Carolina. Five health insurers have sued the federal government since February to recoup payments owed under the program, including Health Republic Insurance, Highmark and Land of Lincoln Health.

BlueCross Blue Shield of North Carolina filed suit June 3, seeking full restitution for $128 million in owed payments from 2014. Moda Health sued CMS seeking $100 million in owed payments from both 2014 and 2015.  

Some insurance policy experts believe the DOJ's request for dismissal may put pressure on health plans to pursue a settlement agreement with the government, reports Advisory Board.

House Republicans have threatened to sue the president's administration should it make moves to settle lawsuits with insurers over risk corridors payments.

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