Welcome to the Risk Corridors Class Action Website

Important Update: On July 23, 2020, the United States Court of Federal Claims (“Court”) approved dividing the Class into subclasses, and entered a judgment in favor of the Non-Dispute Subclass. Additionally, the Court set a schedule for determining attorneys’ fees and nontaxable costs payable from the Non-Dispute Subclass’ net judgment proceeds. For more information and to view the Order, please click here.

What is this Lawsuit About?

Plaintiff Health Republic Insurance Company claims that Defendant United States has not fully paid the risk corridor amounts for 2014 and 2015 to which it and other insurers such as your organization are entitled under the Patient Protection and Affordable Care Act (“Affordable Care Act”). Health Republic seeks payment for the class from the United States for the full amount of unpaid risk corridor payments for the 2014 and 2015 plan years. A detailed description of this claim and important Court Documents can be found on the Important Documents page of this website.

Who is a Class Member?

On January 3, 2017, the United States Court of Federal Claims ("Court") permitted the lawsuit to proceed as a class action on behalf of the following class of people or entities: 

All persons or entities offering Qualified Health Plans under the Patient Protection and Affordable Care Act in the 2014 and 2015 benefit years, and whose allowable costs in either the 2014 or 2015 benefit years, as calculated by the Centers for Medicare and Medicaid Services, were more than 103 percent of their target amounts (as those terms are defined in the Patient Protection and Affordable Care Act).  Excluded from the Class are the Defendant and its members, agencies, divisions, departments, and employees.

On July 23, 2020, the United States Court of Federal Claims (“Court”) entered an Order approving the following subclasses:

• Non-Dispute Subclass: All approved class members offering Qualified Health Plans under the Patient Protection and Affordable Care Act in the 2014 and 2015 benefit years, whose allowable costs in either the 2014 or 2015 benefit years, as calculated by the Centers for Medicare & Medicaid Services, were more than 103 percent of their target amounts (as those terms are defined in the Patient Protection and Affordable Care Act), except those entities that must seek approval from a state court prior to stipulating to judgment, entities with ongoing disputes with the government concerning the amount due to the entity under Section 1342 of the Affordable Care Act, entities that dispute the government’s right to offset debts against a judgment pursuant to Section 1342, and entities that dispute the extent of any such offset.
• Dispute Subclass - All approved class members offering Qualified Health Plans under the Patient Protection and Affordable Care Act in the 2014 and 2015 benefit years, whose allowable costs in either the 2014 or 2015 benefit years, as calculated by the Centers for Medicare & Medicaid Services, were more than 103 percent of their target amounts (as those terms are defined in the Patient Protection and Affordable Care Act), and that dispute the amount due to the entity under Section 1342 of the Affordable Care Act, and/or dispute the government’s right to offset debts against a judgment pursuant to Section 1342, and/or dispute the extent of any such offset.
• Arches Subclass - All approved class members offering Qualified Health Plans under the Patient Protection and Affordable Care Act in the 2014 and 2015 benefit years, whose allowable costs in either the 2014 or 2015 benefit years, as calculated by the Centers for Medicare & Medicaid Services, were more than 103 percent of their target amounts (as those terms are defined in the Patient Protection and Affordable Care Act), and who have reached an agreement with the government related to offsets, but must seek approval from a state court prior to stipulating to judgment.

What are my Rights and Options?

You will not have to pay any money out of pocket to participate in the Class.  If the Class is successful in this litigation, however, Class Counsel (defined below) will ask the Court’s permission to be compensated for litigating this case and representing the successful Class.  Any sums received by Class Counsel in compensation will be deducted from any recovery, which will proportionately reduce the amount of any award each Class Member receives pro rata.  If the case is unsuccessful, you will have no obligation for attorneys’ fees or costs.

Who is Class Counsel?

The Court has decided that attorneys at the law firm of Quinn Emanuel Urquhart & Sullivan, LLP are qualified to represent you and all Class Members.  Quinn Emanuel Urquhart & Sullivan, LLP is called “Class Counsel.”  Class Counsel has experience handling this type of lawsuit.  More information about Class Counsel is available at: www.quinnemanuel.com.

You do not need to hire your own lawyer because Class Counsel will work on your behalf and represent your interests if you join the Class.  You have the right to have your own lawyer.  Your own lawyer can appear in court for you if you want someone other than Class Counsel to speak on your behalf.  If you choose to hire your own lawyer, you will have to pay that lawyer.

For more information including a Class Action Opt-In Notice Form and Detailed Notice, please visit the Important Documents page of this website.