Rep. Chris Stewart (R., Utah) is urging colleagues to join him in filing a suit on behalf of the House of Representatives to ensure that a bailout of Obamacare insurers does not happen.
The Centers for Medicare and Medicaid Services released a memo in September that explained that the risk-corridor program, which transfers funds from profitable insurers to insurers with losses, is likely to experience a significant shortfall.
"In the event of a shortfall for the 2016 benefit year, HHS will explore other sources of funding for risk corridors payments, subject to the availability of appropriations," the memo said. "HHS will record risk corridors payments due as an obligation of the United States Government for which full payment is required."
"We know that a number of issuers have sued in federal court seeking to obtain the risk corridors amounts that have not been paid to date," the memo continued. "As in any lawsuit, the Department of Justice is vigorously defending those claims on behalf of the United States. However, as in all cases where there is litigation risk, we are open to discussing resolution of those claims. We are willing to begin such discussions at any time."
Stewart wrote in a letter to Speaker Paul Ryan (R., Wis.) that the agency’s intention to settle with insurers by paying them from the a government fund used to make legal payments is a "brazen effort" to violate a section of the law that prohibits Congress from using appropriated funds to make risk corridor payments.
"We urge you to initiate a civil action on behalf of the House of Representatives in Federal court, pursuant to the authority granted you under House Resolution 676 of the 113th Congress and which remains in effect through the rules of the 114th Congress," Stewart wrote.
Stewart said he does not believe the Justice Department will end the Obama administration’s attempts to bypass Congress, especially since acting administrator of the agency, Andy Slavitt, testified that he intended to use taxpayer funds to settle insurers’ claims.
"Such an egregious misuse of taxpayer funds is not only a violation of the law but it also represents an institutional challenge to the legislative branch and should be met with the fullest opposition from the House of Representatives," Stewart wrote. "If such payment is not met with a challenge from Congress, there is no limit to any Administration’s ability to decide which of its priorities to fund."
The congressman said that this is yet another attempt to rescue Obamacare from itself.
"The President sold the risk corridors as something that would pay for itself, but now that the losses are mounting and insurance companies are jumping ship, the Obama Administration is trying to illegally bypass Congress and put taxpayers on the hook, again," Stewarts said in the letter.