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 judgement proceeds. For more information and to view the Order, please click here.

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.

For more information and to view the Order, visit the Important Documents page.

The Court appointed Quinn Emanuel Urquhart & Sullivan, LLP as counsel for each subclass.

On July 30, 2020, counsel for the Non-Dispute Subclass filed a motion for an award for attorneys’ fees and nontaxable costs. Members of the Non-Dispute Subclass may object or respond to the motion. Such objections/responses must be made in writing and submitted to Stephen Swedlow and Benjamin Berkman at stephenswedlow@quinnemanuel.com and benjaminberkman@quinnemanuel.com no later than August 20, 2020. To see other key dates, visit the Key Dates page.

With respect to the Dispute Subclass, the Court entered a briefing schedule for further proceedings. The briefing schedule, along with filing deadlines, can be found in the Order issued by the Court on July 23, 2020. To view the Order, please click here.

With respect to the Arches Subclass, the parties are to file, no later than August 21, 2020, a joint status report advising the Court of the status of the request for state approval and proposing a schedule for providing the Court with periodic updates on that request. For more information, please review the Order issued by the Court on July 23, 2020 here.

Counsel for the Non-Dispute Subclass filed a motion for an award of attorney’s fees and nontaxable costs on July 30, 2020. The Court has not ruled on an award of attorney’s fees and nontaxable costs. However, on October 16, 2020, the Court granted Plaintiff’s Motion for Leave to Distribute Funds to the Non-Dispute Subclass. Specifically, the Court approved distribution of 95% of the funds recovered by the Non-Dispute Subclass in accordance with the exhibit attached to the order located on the Important Documents page here. Once payment instructions have been received and validated by the administrator, it can take up to three weeks to process payment. Please be patient.

On July 23, 2020, the United States Court of Federal Claims (“Court”) issued an Order dividing the Class into subclasses and entering 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 judgement proceeds. With respect to the Dispute Subclass, the Court set a briefing schedule for further proceedings. With respect to the Arches Subclass, the Court requested for a joint status report. For more information regarding specific dates for filing deadlines, please review the Order here.

You do not have to go to Court for this case. The Court has appointed Quinn Emanuel Urquhart & Sullivan, LLP as counsel for each subclass. Subclass counsel will represent all class members.

If you are a member of the Non-Dispute Subclass as defined in the Order executed July 23, 2020, a share of the judgment will be distributed to you once calculations have been made. We do not know when these payments will be distributed; please be patient.