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The federal government forms for applying for health coverage are seen at a rally held by supporters of the Affordable Care Act in Jackson, Mississippi October 4, 2013. REUTERS/Jonathan Bachman
(Reuters) - A federal judge on Thursday awarded Quinn Emanuel Urquhart & Sullivan nearly $185 million in fees for representing health insurers that were cleared to receive $3.7 billion from the federal government under an Obamacare program.
U.S. Court Federal Claims Judge Kathryn Davis approved a request the firm made after the U.S. Supreme Court last year ruled the federal government owed insurers $12 billion under a program aimed at encouraging them to offer medical coverage to previously uninsured Americans.
Those sums were owed under the Affordable Care Act's "risk corridor" program, which was designed to mitigate insurers' risks from 2014 to 2016, when they sold coverage to previously uninsured people through exchanges set up under Obamacare.
In April 2020, the Supreme Court by an 8-1 vote reversed a ruling by the U.S. Court of Appeals for the Federal Circuit holding that Congress through appropriations riders had suspended the government's obligation to make payments under the program.
Quinn Emanuel did not litigate the cases before the Supreme Court. But Davis on Thursday noted that the firm was the first nationally to file a lawsuit in 2016 over the government's failure to make risk corridor payments.
The firm had argued that it and the lead plaintiff in the proposed class action, Oregon-based Health Republic Insurance Company, took a "substantial risk" pursuing that case, which was followed by a flurry of similar lawsuits by other insurers.
The firm's fee request was granted despite opposition from insurers, mostly UnitedHealthcare and Kaiser Permanente affiliates represented by Sheppard, Mullin, Richter & Hampton, who argued it overstated it role and deserved just 8.8 million.
But Davis said the objectors did not contest that Quinn Emanuel "pioneered" the arguments that ultimately led to the Supreme Court ruling in favor of the industry.
"At the end of the day, what is more important is that Class Counsel’s legal theory resulted in a huge award to the classes here," Davis wrote.
Stephen Swedlow, a lawyer at Quinn Emanuel, in a statement said the firm was proud of its work in the litigation. "We believed the 5% fee was reasonable at the time we requested it and our position was validated by the court," he said.
Moe Keshavari, a lawyer for the objectors at Sheppard, Mullin, did not immediately respond to a request for comment.
In 2020, Quinn Emanuel had gross revenues of $1.3 billion, according to the trade publication The American Lawyer.
For the class: Stephen Swedlow and J.D. Horton of Quinn Emanuel Urquhart & Sullivan
For the objecting class members: Moe Keshavari of Sheppard, Mullin, Richter & Hampton
For the United States: Charles Canter and Marcus Sacks of the U.S. Justice Department
Related stories:
Supreme Court tells U.S. government to pay insurers $12 billion under Obamacare
Quinn Emanuel says work for Obamacare insurers 'more than justifies' $185 million fee bid
Obamacare insurers blast Quinn Emanuel's 'grossly excessive' $185 mln fee bid
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