Published: Wed, July 11, 2018
Medical | By Marta Holmes

Health Care Primer: The Sabotage And Retaliation Edition

Health Care Primer: The Sabotage And Retaliation Edition

The Centers for Medicare and Medicaid Services, which administers programs under the Affordable Care Act, said the action affects $10.4 billion (7.8 billion pounds) in risk adjustment payments.

The Centers for Medicare and Medicaid Services said it had to put the payments on hold, after a US district court judge ruled the government arrived at the formula that guides the payouts in a flawed way.

"The federal government's decision to suspend payment transfers under the ACA's risk adjustment program could have a significant impact on premiums and place an additional burden on people in the community who can least afford it", CareFirst's president and CEO, Brian Pieninck, said in a statement.

The Trump administration is halting billions of dollars in payments required under the ACA, citing a district court decision in New Mexico from earlier this year.

More news: Sixers are only East team Kawhi Leonard is interested in

"We were disappointed by the court's recent ruling".

The Wall Street Journal was the first to report the expected suspension of the payments.

The Trump administration on Saturday halted billions of dollars in payments to health insurers under the Obamacare healthcare law, saying that a recent federal court ruling prevents the money from being disbursed.

This is distinct from the debate over ObamaCare's cost-sharing payments, which the Trump Administration cut off past year after a federal judge barred the subsidies that Congress had not appropriated. "It moves us back to some extent to the status quo where people with pre-existing conditions found it very hard to get insurance".

More news: It’s official: Lakers announce LeBron James has signed

"We are extremely disappointed that the administration has frozen payment transfers under the Affordable Care Act's (ACA) risk adjustment program, which is created to keep costs down for consumers while meeting the medical needs of those requiring significant care", President and CEO Scott Serota said in a statement. "It will undermine Americans' access to affordable coverage, particularly for those who need medical care the most".

Navigators applying for funding will also be encouraged to show how they will educate people about the newly expanded alternatives to Obamacare, such as association health plans and short-term plans. The government collects the money from health insurers with relatively healthy enrollees, who cost less to insure.

Some health care experts, however, believe that risk adjustment has caused more damage than good and needs urgent fixing.

It also comes as insurers appeared to be warming back up to the ACA. Insurers were entering or returning to at least a dozen states for 2019 enrollment, while others were expanding their presence in the states in which they operate.

More news: President Trump, you need North Atlantic Treaty Organisation more than ever

The Trump administration on Monday announced another nail in the coffin of Obamacare, declaring it would withhold the payment of risk-adjusted premiums to insurers.

Like this: