At the incep­tion of the Afford­able Care Act, the fed­er­al gov­ern­ment guar­an­teed car­ri­ers a sub­sidy to help them off­set antic­i­pat­ed loss­es from the new “guar­an­teed issue” enroll­ment rules. With no under­writ­ing per­mit­ted, health car­ri­ers antic­i­pat­ed (cor­rect­ly) greater loss­es on their book of busi­ness, and the gov­ern­ment was will­ing to give them a break, except that now they are going broke (well, not broke exact­ly, but they are limp­ing) In the end, insur­ers received pay­ment under the “risk cor­ri­dor” allowance on only 12.6% of the amount claimed. As a result, High­mark, which is the fourth largest “Blues” com­pa­ny, has filed suit to recov­er their loss­es, claim­ing they were down $222 mil­lion in the ACA mar­ket in 2014 and $590 mil­lion in 2015.
And since every­one likes a good pile on, oth­er car­ri­ers are expect­ed to join the suit. OK…