PORTLAND, Ore., April 29, 2020 /PRNewswire/ -- Cambia Health Solutions is pledging to donate the entire share of the risk corridor payment the company's regional health plans will receive from the federal government, after taxes and other federal obligations, to address social isolation and related mental health issues brought on by COVID-19 in rural communities.
Earlier this week, a U.S. Supreme Court ruling held, and the federal government is required to make good on the risk corridor payments owed to insurers promised under the Affordable Care Act. Cambia's regional health plans will donate any money ultimately received in the risk corridor case to non-profit community partners who are working to address the mental health impact of COVID-19 in rural communities.
"We are living in extraordinary times. Social distancing has helped keep people safe and prevent the spread of the virus, but it has also had the unintended consequence of creating social isolation, leading to mental health issues for many people," said Cambia CEO Mark Ganz. "Our financial forecast did not include this payment and we have decided to give every penny that we will receive after taxes and other federal obligations to address the mental health and wellbeing of people and families in rural communities impacted by this pandemic."
Risk corridor payments were originally designed as part of the Affordable Care Act to mitigate insurers' financial risks when they sold coverage to previously uninsured people through exchanges, but the government failed to make these payments for the 2014-2016 years.
About Cambia Health Solutions
Cambia Health Solutions, headquartered in Portland, Oregon, is dedicated to transforming health care. We put people at the heart of everything we do as we work to make the health care system more economically-sustainable and efficient for people and their families. Our company reaches nearly 70 million Americans nationwide, including more than 3.1 million people in the Pacific Northwest who are enrolled in our regional health plans. To learn more about us, visit CambiaHealth.com or Twitter.com/Cambia.
SOURCE Cambia Health Solutions