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Moda To Sue Federal Government


Christian Delbert


One of Oregon’s largest health insurance companies, Moda, announced Wednesday it’s going to sue the federal government.

Earlier this year, Moda's parent company had to borrow millions of dollars and sell off assets. That was because the feds said health insurers would not be getting as much as they thought from so-called "risk corridor payments" under the Affordable Care Act.

Moda was counting on payments totaling $180 million last year.

Risk corridor payments were the federal government’s way of getting companies to jump into the newly created Affordable Care Act marketplaces.

But changes to the law in 2015 reduced those payments.

Moda is the third insurer in the country to take legal steps to recover the money.

Copyright 2016 Oregon Public Broadcasting

Kristian Foden-Vencil is a reporter and producer for Oregon Public Broadcasting. He specializes in health care, business, politics, law and public safety.