Maryland: Health Insurance CO-OP Suing Federal Government Over Risk-Adjustment Payment

Evergreen Health CO-OP is suing the federal government over its risk adjustment program, instituted under the ACA to mitigate adverse selection and stabilize premiums. Under the program, Evergreen Health is required to pay one-quarter of its 2014 revenue—more than $22 million—to the State to offset losses experienced by poorer-performing insurers. Evergreen Health CEO Peter Beilenson argues the risk adjustment program methodology favors larger insurers and will ultimately put smaller insurers out of business.