Microsoft is offering to settle healthcare complaints and other claims with the government for $7,5 billion, according to a document filed in court Monday.
In response to a motion filed by Microsoft and other health care providers, the Justice Department and the Department of Health and Human Services said the company will pay $4.5 million per case to settle claims for a total of $7 billion.
Microsoft will pay the government a penalty equal to the difference between the number of plaintiffs who successfully challenged the company’s policy and the number who lost coverage.
Microsoft has said it’s going to use the settlement to support initiatives such as the Affordable Care Act, which it says is helping millions of Americans afford health insurance.
It also said the government’s claim is related to its participation in the Healthcare Cost Sharing Reduction (HCSR) program, which helps subsidize deductibles and co-pays for some high-cost plans.
“Under the terms of this settlement, Microsoft will contribute a minimum of $4,200 per case, with an additional $2,400 to $4 and $3,200 for each additional complaint filed by a patient,” the Justice and HHS agencies said in their motion.
“The total amount of the settlement will be approximately $7 million.”
“We expect to reach a mutually agreeable settlement agreement with Microsoft, which is expected to be finalized in the first half of 2019,” the agencies said.
The Justice Department said in its motion that Microsoft “will use its assets to fund initiatives aimed at reducing healthcare costs.”
The Department of Justice and Health and Health Care Services are seeking an order declaring Microsoft’s HCSR payments illegal.
HHS also wants Microsoft to pay a fine of at least $735 million, or $5.6 billion, or the same amount as the government paid to settle with Pfizer over allegations that the company withheld information from the government and its Medicare Advantage plans.
Pfizer was forced to settle charges of withholding information from Medicare Advantage and Medicaid programs.
The Justice Department’s complaint alleges that the health care giant’s practices “inappropriately affected” Medicare Advantage customers and caused them to lose out on critical benefits.
The complaint also said Microsoft’s policy violates federal antitrust laws, which prohibit “discriminatory” pricing practices.
The companies are not required to pay the fines.