House Republicans could sue HHS over rumored risk corridor settlements

Rep. Chris Stewart, R-Utah, is circulating a letter among members of his party calling for a lawsuit against HHS to block the agency from settling legal disputes with insurers over the Affordable Care Act’s risk corridor program.

Risk corridor payments were one of several risk adjustment measures designed to shield insurers from large losses in the first years of the ACA exchanges. Without funding from the Republican-controlled Congress, however, HHS and CMS said they could only fulfill 12.6 percent of the requests from insurers, prompting several lawsuits.

In a September congressional hearing, CMS Acting Administrator Andy Slavitt hinted the agencies could settle with the insurers, using funds out of a separate legal fund rather than going through Congress. It’s this scenario the Stewart wants his party to prevent.

“Such an egregious misuse of taxpayer funds is not only a violation of the law but also represents an institutional challenge to the legislative branch and should be met with the fullest opposition from the House of Representatives,” Stewart wrote to House Speaker Paul Ryan. “If such a payment is not met with a challenge from Congress, there is no limit to any Administration’s ability to decide which of its priorities to fund.” 

House Republicans have already questioned the legality of such a move and requested HHS turn over information related to potential settlements, like which insurers have said they’re planning on suing over the risk corridor program.

It’s possible the Republicans take a legislative route to blocking any settlements by including it in an amendment to the government funding bill which will have to be crafted after the election. The House majority has found success in suing the Obama administration on ACA-related matters, with a judge ruling in their favor on how cost-sharing payments were funded. That decision is now being appealed.