SCOTUS Rules The Government Must Pay Obamacare Insurers $12B

SCOTUS Rules The Government Must Pay Obamacare Insurers $12B

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Health Sciences, Social Studies, Biology

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The federal government is required to pay $12 billion to insurance companies under the Affordable Care Act (ACA) to cover losses. This provision, known as risk corridors, was designed to protect insurers during the initial years of the health insurance marketplaces. In 2015, Congress restricted the use of taxpayer dollars to support the ACA, leading to a Supreme Court case. Justice Sonia Sotomayor emphasized the government's obligation to honor its commitments, while Justice Samuel Alito dissented, viewing the payments as a bailout. Insurers have also filed lawsuits claiming the government failed to fund them for covering low-income customers' medical bills. The Supreme Court will hear another case questioning the ACA's constitutionality.

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