The Department of Health and Human Services (HHS) has been found to have wrongfully withheld payments from a Nevada health insurance cooperative under the Affordable Care Act, according to a ruling by a federal appeals court. Nevada Health CO-OP had received approximately $66 million in startup and solvency loans, but state regulators deemed the cooperative “unsound,” leading to its eventual closure. In response, the HHS canceled the loan agreements and stopped cost-reduction payments, prompting legal action from the receiver overseeing the cooperative’s claims. The court’s decision highlights the agency’s improper handling of financial support for the cooperative during its financial turmoil.
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