Health Leaders Media talked to L.A. Care CEO John Baackes in "Insurers on the hook for risk corridor losses". The piece talks about the federal appeals court ruling that the federal government is not obligated to pay about $12.3 billion in "risk corridor" payments that were provisioned into the Affordable Care Act (ACA). Health insurance companies will not get the money they were promised that would insulate them from excessive losses under an agreement to provide ACA-mandated coverage benefits.
John Baackes, CEO of L.A. Care Health Plan, the nation's largest publicly operated health plan, said the ruling "was decided on a parsing of wording rather than the intent of Congress to provide insurers with a built-in subsidy so they would be able to provide participants on the exchange with affordable access to quality health insurance."
Appeals Court Judge Pauline Newman wrote a dissent, warning that the ruling against the payers could come back to haunt the government, whose "ability to benefit from participation of private enterprise depends on the government's reputation as a fair partner."
About L.A. Care Health Plan
L.A. Care Health Plan is a public entity and community-accountable health plan serving residents of Los Angeles County through a variety of health coverage programs including L.A. Care Covered™, Medi-Cal, L.A. Care Cal MediConnect Plan and PASC-SEIU Homecare Workers Health Care Plan. L.A. Care is a leader in developing new programs through innovative partnerships designed to provide health coverage to vulnerable populations and to support the safety net. With more than 2 million members, L.A. Care is the nation’s largest publicly operated health plan.