Health Republic Insurance Company v. United States
Health Republic Insurance Company Risk Corridors Class Action
Case No. 16-cv-00259-MMS

Welcome to the Risk Corridors Class Action Website

Important Update: On November 22, 2024, the Court ordered Class Counsel to provide approximately $92 million to the Claims Administrator for distribution to Non-Dispute Subclass members on a pro rata basis for the Health Republic and Common Ground Healthcare risk corridors matters.  Prior to distribution, the Claims Administrator will reach out to Non-Dispute Subclass members to confirm account details. The Claims Administrator is working to distribute payments on or before December 16, 2024.  A copy of the order is available on the Important Documents page.

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?

YOUR LEGAL RIGHTS AND OPTIONS IN THIS CLASS ACTION LAWSUIT:

Ask to Be Included

(Opt Into the Class)

Receive any risk corridor payments generated from this lawsuit, and be bound by its results.

If you are eligible to be a Class member and asked to be included by filling out the form mailed to you or located on the Important Documents page of this website, the Court will include you in the Class.  As a Class member, you will have the right to receive a portion of any money that results from the Court’s decision in this case, but you will not be obligated in any way to conduct the lawsuit yourself.  You will be bound by any judgment or order in this case, both favorable and unfavorable.  This means that if you joined the Class, you will not be able to sue the United States separately for the same legal claims.

In order to join the Class, you must have submitted a Class Action Opt-In Notice Form electronically, by facsimile, by first-class mail, or by pre-paid delivery service. The Class Action Opt-In Notice Form must have been submitted, faxed, postmarked, or delivered by Friday, May 12, 2017.  This deadline has passed.

Do Nothing

Get no benefits from the lawsuit.  Keep rights to sue the United States separately.

By doing nothing, you will not be included in this lawsuit and you will have no rights to any money or benefits that may come from the Court’s decision.  However, you keep the right to hire your own lawyer or proceed without counsel to sue the United States separately about the same legal claims in this lawsuit and you will not be legally bound by any decision of the Court in this class action.

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.

Key Dates

 

Date Event
May 12, 2017
(Passed)

Opt-In Deadline

July 30, 2020
(Passed)

Motion for Attorneys’ Fees and Nontaxable Costs Deadline

August 20, 2020
(Passed)
  Objection/Response Deadline
September 3, 2020
(Passed)
  Deadline to Respond to Objections

For More Information

Visit this website often to get the most up-to-date information.

Mail:
Risk Corridors Class Action
c/o JND Class Action Administration
PO Box 91307
Seattle, WA 98111