The Justice Department has authorized a $400 million settlement with the Alaska Native Tribal Health Consortium over contract support costs tied to federally funded healthcare programs.
ANTHC sued the federal government in 2021, alleging it had not received contract support costs owed under the Indian Self-Determination and Education Assistance Act. The consortium administers certain healthcare programs that the federal government would otherwise operate for American Indians and Alaska Natives in Alaska.
The dispute centered on whether the government was required to cover administrative costs associated with revenue ANTHC collected from third-party payers, including Medicare and commercial payers.
In 2024, the Supreme Court ruled in Becerra v. San Carlos Apache Tribe that the federal government must pay qualifying contract support costs on third-party revenue when an agreement under the law requires that revenue to support the healthcare program.
Following the decision, the Justice Department entered negotiations with ANTHC to resolve the litigation.
“Our $400M settlement with ANTHC provides the consortium with support and autonomy for the healthcare services they provide to American Indians and Alaska Natives,” Acting Attorney General Todd Blanche said in a July 21 news release.
ANTHC President/CEO Natasha Singh said the settlement addresses costs that have long been owed to tribes that assumed responsibility for delivering healthcare on the federal government’s behalf.
“This settlement marks an important step toward ensuring that resources accurately reflect the true cost of operating a complex Tribal health system and advancing self-determination in healthcare,” Ms. Singh said in a statement to Becker’s.
In anticipation of the settlement, ANTHC’s board committed resources to several projects across its statewide system of care. The investments include the largest expansion of the federally owned Alaska Native Medical Center, construction of an ANTHC skilled nursing facility and upgrades to technology and infrastructure.
Ms. Singh said similar settlements are occurring across the Alaska Tribal Health System following the Supreme Court’s 2024 decision, which clarified the federal government’s responsibility to cover these costs.
“Elements of ANTHC’s settlement are still being finalized, but this gives us a stronger foundation to expand access, improve care, support our workforce and make thoughtful long-term investments to advance the health of Alaska Native and American Indian people,” she said.
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