Published: Tue, July 10, 2018
Medical | By Marta Holmes

Health care premiums could rise following Trump administration's

Health care premiums could rise following Trump administration's

Initially, the decision could affect $10.4 billion in payments tied to the 2017 benefit year, .

"We were disappointed by the court's recent ruling", CMS Administrator Seema Verma said in the agency's statement. The government collects the money from health insurers with relatively healthy enrollees, who cost less to insure.

Officials with Kaiser Permanente, the state's other insurer with Affordable Care Act plans, have raised concerns about the risk adjustment program but disagreed with the suspension of the payments.

Since then, it has taken administrative steps to weaken the law, including the removal of the individual mandate - which required everyone to purchase health insurance.

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The Risk adjustment formula is a key component of Obamacare, allowing for market stabilization. "There is a need to analyze insurers case-by-case and account for their competitive landscapes", said Tinglong Dai, an associate professor of operations management and business analytics at the Johns Hopkins University Carey Business School. At stake are billions of dollars in payments to insurers with sicker customers.

"The risk adjustment formula was extremely biased in favor of large, established insurers and discriminated against new and small insurers, including co-ops like ours", Hickey told The New York Times on July 7.

Insurers are pressing the administration to resolve the issue and resume the payments, arguing that premiums will rise for ObamaCare enrollees if funding is cut off.

The main insurance trade associations in Washington have been organizing calls with their member companies and trying to coordinate a response. "That will increase competition, and competition will help keep prices down".

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"This action will significantly increase 2019 premiums for millions of individuals and small business owners and could result in far fewer health plan choices", Scott Serota, CEO of the Blue Cross Blue Shield Association, said in a statement. New Mexico's ruling alone isn't enough to freeze payments, unless, he says, it's a "politically motivated" move to further disrupt the ACA.

"This decision comes at a critical time when insurance providers are developing premiums for 2019 and states are reviewing rates".

President Donald Trump's administration has used its regulatory powers to undermine Obamacare after the Republican-controlled Congress past year failed to repeal and replace the law.

"Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare".

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The mainstream media report offered more criticism from supporters of the Affordable Care Act. On the same day, Minuteman Health, Inc. filed a similar complaint in district court in MA. But another district court in MA upheld the formula. Following the decision, CMS asked the court to reconsider its ruling.

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