Highmark [insurance company] sues federal government over Obamacare losses

The ACA aka Obama.Care has provisions that guard against insurance companies losing money.

Now we have one company that is suing the government claiming the government isn't paying them for their losses.

Highmark has apparently been offering low premium policies and many doctors seem to think that's the reason for the losses.

Does anybody in the business know any details and maybe know of other insurance companies getting short changed?

Have to wonder if there is a hidden agenda with this? Maybe somebody wants to buy them out at a discount.


Highmark sues federal government over Obamacare losses

Highmark Inc. filed a lawsuit against the federal government Tuesday seeking $223 million in payments related to the insurer's losses in the health insurance marketplace formed by the federal Affordable Care Act.

The 2010 law included a “risk corridor” provision in which the federal government promised to cover a portion of losses insurers sustained in the first three years on the new market, which came with an unknown set of risks from people who had not had insurance coverage before.

Highmark lost more than $260 million in the new market in 2014 because of sicker-than-expected enrollees and calculates it is owed $223 million for that year, said Karen Hanlon, chief financial officer of Highmark Health, the insurer's parent company.

a reply to: xuenchen

Isn't going into business a risk? What if they made a profit? would they refund money to clients?

originally posted by: tinner07
a reply to: xuenchen

Isn't going into business a risk? What if they made a profit? would they refund money to clients?

Actually there are provisions for just that.

Have to wonder if there is a hidden agenda with this? Maybe somebody wants to buy them out at a discount.

Obama 'care' is the same SNIP as the chevy volt was.

Sell something that costs 3 times as much and sell to the public at a loss.

Hence the state 'guaranteed' insurance companies money to recoup said loses.

But that is only half the story.

The goal of the ACA was to put insurance companies out of business altogether.

And let the state take over.

Which the state already has the largest monopoly vis a vis medicare,medicaid, and tricare.

The state doesn't like COMPETITION.