Supreme Court awards $12B to private Obamacare insurers

Private health insurers will bank a collective $12 billion windfall after the U.S. Supreme Court ruled Monday, 8 to 1, that they’re entitled to federal compensation for money they were promised to help stand up the Affordable Care Act.

The decision overturned a lower court’s prior call, which was that Congress had successfully suspended that part of its agreement on the deal. Critics of that decision said “reneged on” would have been the correct term.

Monday’s majority argument was authored by Justice Sonia Sotomayor, who wrote that the federal government “should honor its obligations,” according to numerous outlets.

The only dissenting opinion came from Justice Samuel Alito, who stated the decision “has the effect of providing a massive bailout for insurance companies that took a calculated risk and lost.”

For more, see coverage from Reuters here, USA Today here and NPR here.