The Electrical Welfare Trust Fund, et al. v. United States of America

Plaintiffs filed an action in the United States Court of Federal Claims to recover monies illegally assessed and collected from Plaintiffs through the United States government’s unlawful interpretation and application of Section 1341 of the Patient Protection and Affordable Care Act of 2010, codified in 42 U.S.C. § 18061 (the “Act” or “ACA”). As part of the Act’s implementation, the Transitional Reinsurance Program was created and includes a Transitional Reinsurance Contribution (the “Contribution”) imposed on certain “contributing entities.” The Contribution serves to fund reinsurance payments to health insurance issuers that insure high risk individuals as new enrollees. Those entities deemed “contributing entities” were required to pay the Contribution to the federal government during the transition period, including benefit years 2014 through 2016. On July 30, 2021, the Court denied Defendant’s motion to dismiss, finding that self-administered, self-insured multiemployer plans were not properly considered contributing entities and leaving the case open for discovery on behalf of a class of self-insured multiemployer employee health and welfare benefit plans as to whether Defendant’s imposition of the Contribution on Plaintiffs violates the Due Process and/or Takings Clauses of the Fifth Amendment to the U.S. Constitution. An amended complaint was filed on September 14, 2021 and the case is now proceeding through discovery.