Blue Cross and Blue Shield of North Carolina is yet another health insurer to file a lawsuit against the federal government, demanding $129 million in unpaid risk corridor payments.
Blue Cross and Blue Shield of North Carolina filed the lawsuit Thursday, claiming the federal government has paid less than 10 percent of the risk corridor payments they are owed from fiscal year 2014.
The risk corridor program is designed to hedge against sky-rocketing costs for insurance providers caused by high claims costs of new enrollees. Providers sought over $2 billion in 2014 in risk corridor payments, but the Department of Health and Human Services (HHS) paid out only $362 million.
BCBSNC is also asking that the federal government provide assurance that risk corridor payments for 2015 and 2016 will be provided in a timely fashion.
The suit is the latest in a string of claims made by health insurance providers against HHS. The lawsuit comes one day after Moda Health — of Portland, Oregon — filed a similar claim in federal court, seeking $180 million in risk corridor payments. (RELATED: Insurer Sues Government Over Massive Losses Because Of Obamacare)
BCBSNC provides insurance coverage to 3.89 million North Carolinians, about one-third of the state’s population.
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