The Supreme Court says insurance companies can collect $12 billion from the U.S. government to cover losses in the early years of Obamacare.
The Supreme Court ruled Monday that when Congress makes a promise to pay, the government must indeed pay up, even if a later Congress changes its mind.
When Congress passed the Affordable Care Act in 2010, it banned insurers from rejecting customers based on preexisting health conditions. The program was set up to partially reimburse the insurance companies that ended up with the sickest and most expensive patients. It said the federal government “shall pay” insurers for their losses if the costs of the expanded coverage outpaced the premiums.
She said Congress could have said the payments were contingent on future appropriations, but it had not done so. As a result, the government had a “legal duty” to pay up. This holding “reflects a principle as old as the nation itself: The government should honor its obligations,” Sotomayor said.
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