U.S. Government to Appeal Ruling that Offset of Insolvent Insurer’s Debt Violated Colo. Law

WASHINGTON, D.C. — The United States government is appealing a ruling that Colorado law bars the U.S. Department of Health and Human Services from using money owed to an insolvent insurer to pay sums the insurer owes under the Patient Protection and Affordable Care Act’s (ACA) reinsurance and risk-adjustment programs.

According to a Dec. 19 notice, the appeal will be heard by the U.S. Court of Appeals for the Federal Circuit. The government is challenging the U.S. Court of Federal Claims’ determination that the HHS’s offset violated Colorado’s insurance liquidation priority scheme by leap-frogging claimants with higher priority.

As part …