Supreme Court justices lean toward insurers on $12 billion Obamacare claims
WASHINGTON - U.S. Supreme Court justices on Tuesday appeared sympathetic to claims made by health insurers seeking $12 billion from the federal government under a program set up by the Obamacare law aimed at encouraging them to offer medical coverage to previously uninsured Americans.
FILE PHOTO: Demonstrators in favor of Obamacare gather at the Supreme Court building in Washington March 4, 2015. REUTERS/Jonathan Ernst/File Photo The justices considered a challenge by a group of insurers of a lower court’s ruling that Congress had suspended the government’s obligation to make such payments. The insurers have said that ruling constituted a “bait-and-switch” that would enable the government to withhold money the companies were promised. The court’s four liberal justices, in addition to Chief Justice John Roberts and Justice Brett Kavanaugh, all asked questions indicating they are inclined to vote for the insurers. “Why doesn’t the government have to pay its contracts just like everybody else?” said Justice Stephen Breyer. Moda Health Plan Inc and other insurers sued in an effort to compel the Department of Health and Human Services to make the payments. The program in question was designed to help insurers recover from early losses they suffered after the 2010 passage of the Affordable Care Act under Democratic former President Barack Obama. The law, dubbed Obamacare, has enabled millions of Americans who previously had no medical coverage to obtain insurance, including those with pre-existing medical conditions. Unlike other court cases involving Obamacare, this dispute before the justices concerns only payments to insurers and does not directly challenge the law itself.“Has there ever been a case where this court has, in effect, required Congress to appropriate ... billions of dollars for private businesses?” he asked the insurers’ lawyer, Paul Clement. Other insurers involved in the case include Blue Cross and Blue Shield of North Carolina, Maine Community Health Options and Land of Lincoln Mutual Health Insurance Company. If the Supreme Court sides with the insurers, it could result in a significant one-time cash infusion for major companies such as Humana Inc (
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