HHS Slush Fund Elimination Act

HHS Slush Fund Elimination Act

This bill prohibits federal funds, including funds appropriated from the Judgment Fund, from being used to pay any final judgment, award, or compromise settlement relating to the transitional reinsurance program or the risk corridor program established under the Patient Protection and Affordable Care Act.

(The Judgment Fund is a permanent and indefinite appropriation to pay judgments against the United States, including awards, compromise settlements, and related interest and costs. Under the risk corridor program, qualified health plans offered in the individual or small group markets participate in a payment adjustment system based on the ratio of the allowable costs of the plan to the plan's aggregate premiums. Under the transitional reinsurance program, health insurance issuers and certain group health plans make contributions to the program, and reinsurance payments are made to issuers for enrollees in certain individual market plans with claim costs within a specified level.)

The bill includes an exception that requires the Department of Health and Human Services (HHS) to pay any final judgment, award, or compromise settlement relating to the two programs from funds appropriated to HHS under provisions of the risk corridor program that require certain health plans with lower costs to make payments to HHS.