Trump administration deals another potential blow to Obamacare
11 July, 2018, 05:22 | Author: Kara Nash
The president last fall also issued an executive order to try to make it easier for individuals and small businesses to buy health plans that cost less than ACA coverage because they cover fewer medical services and bypass the law's rules meant to protect people from old insurance practices in which companies had charged higher prices to women, older people, and those with preexisting medical conditions. The idea is to insulate insurance companies from the cost of enrolling people with pre-existing conditions, and remove the incentive for insurance companies to cherry pick healthy people.
"We were disappointed by the court's recent ruling".
"The decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own", the group said.
"When the rules of the game change after the fact - insurers don't necessarily see the federal government as a particularly reliable partner right now", Levitt says.
The Congressionally mandated risk adjustment program of the Affordable Care Act redistributes funds from plans with lower-risk enrollees to plans with higher-risk enrollees, helping to ensure that sicker individuals can receive coverage by sharing the cost of covering them.
The mainstream media report offered more criticism from supporters of the Affordable Care Act. "As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold", CMS Administrator Seema Verma said.
In January this year, the federal district judge in MA upheld the methodology used by the federal government to calculate risk adjustment payments.
Health insurers say it is a move that could drive up premium costs and create marketplace uncertainty.
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. "This is one of several steps the Trump administration has taken to undermine the ACA".
"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 pro-ACA group Protect Our Care issued a statement from its executive director, Brad Woodhouse, Saturday after the administration announced its decision regarding risk penalty payments, characterizing the move as further chipping away at the Affordable Care Act.
These moves are prompting some insurers to request premium hikes for 2019 in the double digits.
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