WASHINGTON, DC - Republican committee leaders are urging HHS Secretary Sylvia Burwell to provide details about the Risk Corridors program and answers to questions concerning statements made by CMS Acting Administrator Andy Slavitt, who testified under oath last week that the administration is willing to settle lawsuits with taxpayer dollars. Congress has acted twice on a strong, bipartisan basis to ensure that the Risk Corridors program is budget neutral, and no taxpayer dollars are used to cover losses by plans. But the Obama administration has since signaled that they may circumvent Congress through a sue-and-settle scheme.
“During the joint hearing, U.S. Rep. Morgan Griffith asked Mr. Slavitt if CMS takes the position that insurance plans are entitled to be made whole on risk corridors payments, even if there is no congressional appropriation to do so. Mr. Slavitt responded under oath: ‘Yes, it is an obligation of the federal government.’ Mr. Slavitt also testified that the DOJ had reviewed the September 9, 2016, CMS memorandum that invited insurance companies to settle with CMS," wrote the leaders. “Since Congress acted twice to protect taxpayer dollars by prohibiting the use of federal funds to make up for any shortfall in risk corridors payments, the Committee is concerned about the Administration’s intent to use any federal funds to settle the suits brought by the insurance companies. It appears that any such settlements would come from the permanent appropriations for judgments (‘Judgment Fund’)."
During Rep. Griffith’s exchange, he asked CMS to provide the committee with information by the end of the week about insurers who have sued the government over these payments as well as those who have indicated their intent to sue. The lawmakers also requested the names of individuals who have been involved in inter-agency discussions about the lawsuits. To date, the committee has only received publicly available information about carriers that have sued the federal government.
“Further, the Administration’s explicit offer to settle these lawsuits appears to be a direct circumvention of the clear Congressional intent to prohibit the expenditure of federal dollars on this program," explain the leaders, who requested more detailed information by October 4, 2016.
The letter was signed by Energy and Commerce Committee Chairman Fred Upton (R-MI), Health Subcommittee Chairman Joseph Pitts (R-PA), Oversight and Investigations Subcommittee Chairman Tim Murphy (R-PA), Rep. Leonard Lance (R-NJ), and Rep. Morgan Griffith (R-VA).
Read a full copy of the letter, HERE.
