WASHINGTON, DC - As part of the Energy and Commerce Committee’s ongoing investigation of the Obama administration’s settlement offer to circumvent Congress, committee leaders today sent six letters to the insurance companies that have recently sued the government to recover shortfalls in risk corridors payments. The leaders are requesting information and documents about the insurers’ conversations with the administration regarding the lawsuits. Letters were also sent to America’s Health Insurance Plans’ (AHIP) President and CEO, Marilyn Tavenner, and Blue Cross Blue Shield President and CEO Scott P. Serota.
Last week, Republican committee leaders pressed HHS Secretary Sylvia Burwell to provide details about the Risk Corridors program and answer questions concerning statements made by CMS Acting Administrator Andy Slavitt, who testified under oath on Sept. 14, 2016, that the administration is seeking to settle lawsuits with taxpayer dollars. The letters sent today were signed by full committee Chairman Fred Upton (R-MI), Oversight and Investigations Subcommittee Chairman Tim Murphy (R-PA), and Health Subcommittee Chairman Joseph Pitts (R-PA).
In the letters, the committee leaders expressed concern that Congress has twice passed legislative language prohibiting the administration from spending more money on the risk corridors program.
“The Committee is concerned that, in connection with CMS’s solicitation of settlement offers, the Administration may be considering using the permanent appropriation for judgments (“Judgment Fund") to pay any settlement agreements, even though Congress has acted - twice - to expressly prohibit the expenditure of taxpayer dollars on this program," wrote Upton, Murphy, and Pitts.
The leaders are asking the insurers to provide a briefing to committee staff, sharing “all documents and communications between employees of AHIP and employees of the Executive Branch, including the Executive Office of the President, referring or relating to the lawsuits or discussions of other actual or potential legal actions, claims, settlements, or resolution of shortfalls related to the risk corridors program, and all documents and communications among AHIP [or insurance company] employees referencing any discussions with employees of the Executive Branch, including the Executive Office of the President, concerning potential settlement of claims or resolution of shortfalls under the risk corridors program, by Oct. 17, 2016."
