Federal Appeals Court Declines to Revisit Offset Ruling in ACA Reinsurance Program Case

WASHINGTON, D.C. — A federal appeals court has refused to revisit its ruling that Colorado law bars the U.S. government 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.

On Aug. 20, the Federal Circuit U.S. Court of Appeals let stand its decision that the Department of Health and Human Services’ offset would violate Colorado’s insurance liquidation priority scheme by leap-frogging claimants with higher priority.

As part of the ACA, Congress created the Consumer Operated and Oriented Plan (CO-OP) program to ensure …