Boston co-op sues feds for $16.7M risk adjustment payment

Morgan Haefner - Print  | 

Boston-based insurance co-op Minuteman Health filed a lawsuit against the federal government over the $16.7 million it owes under the Affordable Care Act's risk adjustment program, MassLive reported.

The risk adjustment program aims to temporarily level the financial playing field for payers absorbing newly insured, costlier members. Under the program, states collect money from better-performing insurers to pay those payers that incurred higher-than-expected medical costs.

Minuteman is suing CMS administrator Andrew Slavitt, HHS Secretary Sylvia Burwell and both agencies.

Minuteman CEO said in a statement the insurer "can afford to make these payments, but that isn't the point. We cannot continue to allow CMS to take our members' money illegally and give it to more expensive insurance companies. CMS has essentially created a reverse Robin Hood program, which harms consumers, small companies and taxpayers."

The co-op is the latest insurer to fight the ACA program, with Baltimore-based Evergreen Health suing the government last month for $14.7 million it owes in risk adjustment payments.  

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