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'Risk Corridor' Litigation: Who Speaks For The Gov't?

Law360 (March 6, 2018, 12:26 PM EST) -- One of the most heavily litigated issues in recent years is the “risk corridor” litigation involving Section 1342 of the Patient Protection and Affordable Care Act[1], which created a temporary risk sharing program that required that insurers pay into the program if their premium revenue exceeded enrollees' medical costs by a certain amount and required the government to share the losses if the premiums did not cover the costs.

When it became clear that the payments into the program were far less than the payments out,...
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