A government watchdog group has filed a lawsuit against the Department of Health and Human Services (HHS) after the agency failed to turn over Obamacare records despite the expiration of time limits imposed by the Freedom of Information Act.
Cause of Action Institute, a D.C.-based nonpartisan government accountability organization, filed the lawsuit on March 13 after HHS failed to turn over a variety of Obamacare-related records, including documents about its controversial risk corridors program. That program is designed to transfer money between insurance companies that participate in the Obamacare marketplaces.
The Centers for Medicare and Medicaid Services (CMS), a subsidiary of HHS, previously released a memorandum saying that funding for the risk corridor program would not be available in 2015 due to low enrollment numbers and funding shortfalls.
"The memorandum, however, appears to invite insurers to sue CMS and then settle with the Department of Justice (‘DOJ') to obtain funding, which would constitute an end-run of a provision enacted by Congress in 2014 to prevent shifting funds into the risk corridors program and a violation of DOJ guidance regarding ‘backdoor bailouts,'" Cause of Action said in a press release.
"Obtaining risk corridor funding through the DOJ Judgment Fund would be an illegal misuse of appropriated taxpayer money."