Several recent federal court decisions have held that the federal government owes insurers billions in cost-sharing reduction (CSR) payments. The Administration cut off those payments in October 2017, after efforts to repeal the Affordable Care Act (ACA) failed in Congress. Insurers promptly sued, arguing that the government had breached its statutory obligation to compensate insurers for offering the mandated low cost-sharing plans. Of note, the court decisions suggest that the government continues to owe these CSR payments even though most insurers were able to mitigate their losses by increasing plan premiums in 2018 and beyond.

In her latest article for the State Health & Value Strategies Expert Perspectives blog, CHIR’s Sabrina Corlette shares insights on the impact of this litigation and considerations for states conducting oversight of insurers’ proposed premium rates. Read the full article here.