COVID-19 and MLR Guidance On Risk Corridor Recoveries: State Options For Restoring Funds To Policyholders and the Public

This commentary considers ways states could potentially redirect insurers’ extra cash to benefit policyholders and the public. In April 2020, the Supreme Court ruled that the federal government must restore to health insurers approximately $12.3 billion in risk corridor payments under the Affordable Care Act, and policyholders are now posed to receive about $298 million in rebates. At the same time, 2020 has been a highly profitable year for many health insurers, due to depressed utilization of health care services during the COVID-19 pandemic.