Illinois Department of Insurance Acting Director Anne Melissa Dowling issued an order requesting Land of Lincoln Health, the state co-op, to not pay the federal government, until the government gives the co-op money owed under the risk-corridor program, according to The Southern Illinoisan.
Here are six things to know:
1. Land of Lincoln Health maintains the government owes the co-op almost $73 million under the Affordable Care Act's risk-corridor program.
2. Ms. Dowling signed the order to avoid "an immediate liquidation" of the co-op. If Land of Lincoln pays the government, state regulators would legally have to put the insurance company under the state's supervision.
3. Last year, Land of Lincoln Health lost $90 million, and lost more than $17 million this year as of May 31.
4. After reviewing the order, Robert Laszewski, a healthcare consultant and former insurance executive, said the order may not carry much weight as the federal law has more power than state law.
5. In June, Land of Lincoln Health filed a lawsuit against the federal government over $72.8 million unpaid claims the payer alleges it is owed under the risk-corridor program.
6. Last year, payers requested the government pay them $2.87 billion for participation in the risk-corridor program. In October 2015, the government said it would pay less than 13 cents on the dollar of the amount payers requested. Last year, payers requested the government pay them $2.87 billion for participation in the risk-corridor program. In October 2015, the government said it would pay less than 13 cents on the dollar of the amount payers requested.
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