Trump admin expected to halt some payments under Obamacare program

Modesto Morganelli
Luglio 9, 2018

CMS plans to appeal the court's ruling, as the U.S. District Court for the District of MA ruled to uphold the payments.

The funds were expected to go out this fall, the Journal reports.

The Trump administration has halted billions of dollars in annual payments under the Affordable Care Act's risk adjustment program. "It will undermine Americans' access to affordable coverage, particularly those who need medical care the most".

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

The New York Times suggested the payment freeze could "increase uncertainty in the markets and drive up premiums this fall".

Risk-adjustment made up one of the "three R's" that constitute Obamacare's program to stabilize healthcare markets, as the program causes insurers with healthier customers to reimburse insurers with more expensive and sicker enrollees.

The Kaiser Foundation says the program "encourage insurers to compete based on the value and efficiency of their plans rather than by attracting healthier enrollees".

"We urge the Trump administration to back off of this unsafe and destabilizing plan, and instead begin working on bipartisan solutions to make coverage more affordable", said Brad Woodhouse, the executive director of Protect Our Care, a progressive group that supports Obamacare.

"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 the agency's statement.

Why were the payments suspended?

The move comes after a federal judge ruled that the Obama administration's formula calculating the payments was flawed and inadequately justified by regulators, according to the Journal.

FILE PHOTO: A man fills out an information card during an Affordable Care Act outreach event hosted by Planned Parenthood for the Latino community in Los Angeles, California September 28, 2013. "Following through with this latest act of sabotage could raise rates for all consumers even more".

"The Trump administration just keeps pushing their destructive repeal-and-sabotage agenda, no matter the cost to the American people", Brad Woodhouse, the director of Protect Our Care, an advocacy group that supports Obamacare, stated in the New York Times report.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE