Will Obama administration use unethical 'sue and settle' cases to save Obamacare?
A House committee is investigating whether the Obama administration is seeking to compensate insurers for Obamacare losses indirectly, by settling lawsuits with them.The administration has used similar scams to get EPA regulations that it could not otherwise get approved. It is an unethical use of the courts and shows the bad faith of this administration when it comes to the legal process. It should also be considered a violation of legal ethics and their fiduciary responsibility to their client, the government.
Republican leaders on the House Energy and Commerce Committee wrote to six insurers Tuesday, asking them to provide any documents or communications between them and the administration that might shed light on settlement discussions.
The insurers are suing the administration for not giving them the funding they requested through the Affordable Care Act's risk corridor program, which aims to compensate insurers with the largest losses from new enrollees. There's insufficient funding for the payments, which are supposed to come from profitable insurers, but too many companies failed to make a profit under the system to fund the system.
In addition, Congress has blocked the Department of Health and Human Services from using other funding sources to meet insurers' funding requests.
The administration suggested last month that it could provide the funds through settling with the insurers, sparking a backlash from House Republicans who say it doesn't have the authority to do so.