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At the early stage of litigation, courts have been asked by insurers to dismiss all claims because there is no possibility of coverage under the policies.
If the court strikes down the Affordable Care Act in a pending decision regarding the severability of the individual mandate, hospitals could see fewer insured patients and lower reimbursement rates.
Understandably, businesses are looking at ways to stem the tide of mounting losses and are looking to their all-risk insurance policies for help. Most of these claims, however, have been or likely will be denied and, as a result, hundreds of businesses all over the country are filing lawsuits against their insurance carriers.