Minuteman Health Sues Feds Over Affordable Care Act 'Risk Adjustment' Formula

Aug 1, 2016

  A company that offers health insurance plans in New Hampshire under the Affordable Care Act is suing the federal government over a part of the health care law. 

The lawsuit from Minuteman Health aims to block the current form of the federal Risk Adjustment program, which aims to stabilize the health care market by spreading the costs that come from covering sicker people among insurers with healthier clients.

CEO Tom Policelli says what's actually happened is that health care co-ops like Minuteman pay millions to their larger competitors that offer more expensive plans.

"It forces plans like us, which are more efficient and lower cost, to pay those more expensive plans," Policelli says. "That just doesn't make sense - and it's not what the law says."

Attorneys for Minuteman filed the suit in Boston federal district court Friday.

The federal government faces a similar suit from a co-op in Maryland.