Community Health Options loses Round 1 of suit against govt
Aug. 05, 2017
LEWISTON, Maine (AP) — A federal court has ruled against Lewiston-based Community Health Options in its $23 million lawsuit against the federal government.
Community Health Options contends the government owes millions under the Affordable Care Act's "risk corridor" program, established to stabilize the health insurance marketplace.
But the Sun Journal reports (http://bit.ly/2uboYAx ) that the U.S. Court of Claims in Washington, D.C., said payments are funded from user fees, and there wasn't enough to go around.
Community Health Options plans to appeal the claim's dismissal.
The nonprofit is the state's only health insurance co-op. It lost so much money in 2015 that it suspended sales of individual policies in December of that year.
Several other insurers have brought similar claims against the government and at least one by Moda Health in Oregon was successful.
Information from: Sun-Journal, http://www.sunjournal.com