Long Beach, Calif.-based insurer Molina Healthcare is owed $52 million in risk corridors payments, a federal judge ruled Friday.
Here are four things to know.
1. Judge Thomas Wheeler of the U.S. Court of Federal Claims determined the government "is liable for its breach of a statutory and contractual obligation to make full annual payments to insurers who participated in the risk corridor program."
2. The temporary risk corridors program sought to level the financial playing field for payers during the first three years of the ACA's implementation. Under the program, HHS collected payments from insurers with lower than expected claims on the health insurance exchanges and made payments to insurers with higher than expected claims.
3. Judge Wheeler's decision follows a similar ruling he issued in February for Portland, Ore.-based health insurer Moda Health. He ruled the government must pay Moda $214 million under the risk corridors program.
4. The judge's decision also follows Molina's poor second quarter financial results. The insurer recorded a $230 million net loss in the second quarter of fiscal year 2017 and declared plans to exit ACA exchanges in Utah and Wisconsin, as well as a pullback from Washington's exchange.