U.S. Health Insurers Object to $185 Million Legal Fee Request in Obamacare Case

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A recent filing in the U.S. Court of Federal Claims in Washington, D.C. sees UnitedHealthcare Inc and Kaiser Foundation Health Plan Inc objecting to a renewed request from law firm Quinn Emanuel Urquhart & Sullivan for $185 million in class action legal fees. This objection comes after an appeals court invalidated the initial award, deeming it “indefensible.”

The Case

Quinn Emanuel initially secured a $3.7 billion class action judgment for private insurers in 2020, alleging that the U.S. government failed to fulfill its obligations under an Obamacare provision aimed at increasing medical coverage for uninsured Americans. However, the $185 million in legal fees awarded to the firm was struck down by an appeals court last year. The court ruled that a reassessment of the fee amount for the invested hours by the lawyers was necessary. Now, Quinn Emanuel and the objectors, spearheaded by UnitedHealth and Kaiser, are at odds over the appropriate fee.

The Argument

Quinn Emanuel defends the $185 million award, citing the substantial risk undertaken and the 10,000 hours expended on the case. However, UnitedHealth and Kaiser challenged this, alleging that the hours were inflated and unproven. They suggest that a more reasonable fee lies between $11 million and $23 million.

  

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Response and Insurance Concerns

Quinn Emanuel, UnitedHealthcare, and Kaiser have not provided immediate comments on the matter. Quinn Emanuel distributed the $185 million award within the firm, having an insurance policy that obligated it to vigorously pursue its interests in the fee dispute. However, the insurers argue that this policy essentially prevents Quinn Emanuel from seeking a more reasonable award, fearing repercussions from their insurers.

Conclusion

The case, Health Republic Insurance Co v United States, is ongoing in the U.S. Court of Federal Claims, with Adam Wolfson and Andrew Schapiro of Quinn Emanuel representing Health Republic, and Moe Keshavarzi of Sheppard Mullin representing the class objectors.

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