RALEIGH, N.C. (AP) — North Carolina’s largest health insurer is suing to recover what it says is $130 million Washington promised but didn’t pay after it took on sicker customers under President Barack Obama’s reform law.
Blue Cross and Blue Shield of North Carolina sued the federal government Thursday, claiming it’s being shorted on promised payments designed to help stabilize health insurance premiums in 2014.
Congressional Republican opponents of the health reform law two years ago restricted the Obama administration’s legal authority to make payments to insurers under the program.
Blue Cross said it’s lost more than $400 million in 2014 and 2015 on insurance policies sold on marketplaces created by the federal Affordable Care Act. The company estimates three-quarter of that loss is tied to government underpayments.