Health Insurers Hail SCOTUS Ruling in Risk Corridors Case

The Supreme Court’s near-unanimous decision on April 27 to award health insurers $12 billion in unpaid risk corridors funding was certainly a win for the industry, but it might not be as big of a windfall for insurers as it may seem, experts tell AIS Health.

The risk corridors program was part of the Affordable Care Act’s “three Rs” — alongside risk adjustment and reinsurance — which were meant to stabilize the individual market in the law’s early years. With risk corridors, the government shares in insurers’ losses and profits, so health plans with lower-than-expected claims paid into the program while plans with higher-than-expected claims received payment.

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