Letter to HHS Regarding Risk Corridors Program
Excerpt: "During the joint hearing, U.S. Rep. Morgan Griffith asked Mr. Slavitt if CMS takes the position that insurance plans are entitled to be made whole on risk corridors payments, even if there is no congressional appropriation to do so. Mr. Slavitt responded under oath: ‘Yes, it is an obligation of the federal government.’ Mr. Slavitt also testified that the DOJ had reviewed the September 9, 2016, CMS memorandum that invited insurance companies to settle with CMS. Since Congress acted twice to protect taxpayer dollars by prohibiting the use of federal funds to make up for any shortfall in risk corridors payments, the Committee is concerned about the Administration’s intent to use any federal funds to settle the suits brought by the insurance companies. It appears that any such settlements would come from the permanent appropriations for judgments (‘Judgment Fund’)."
To read a copy of the letter, click here.
To read a copy of HHS' October 19, 2016, response, click here.