[ad_1]
Copyright 2018 The Associated Press. All rights reserved. WASHINGTON (AP) – The Trump administration announced on Saturday that it was freezing payments under an "Obamacare" program that protects insurers against insurers' financial losses, a decision that should add In the announcement of a weekend, the Centers for Medicare and Medicaid Services said that the administration is acting because of the contradictory court decision in lawsuits filed by some smaller insurers that ask if they are treated fairly in the program.
The so-called "risk adjustment" program takes payments from insurers with healthier clients and redistributes this money to companies with sicker enrollees. Payments for 2017 are $ 10.4 billion.
The idea behind the program is to remove the financial incentive for insurers to "select" healthier clients. The government uses a similar approach with Medicare private insurance plans and Medicare prescription drug benefits.
Major groups of insurers said Saturday that the action of the administration interfered with a program that works well
. A pillar of the Affordable Care Act coverage said that he was "extremely disappointed" with the action of the administration.
The Trump Administration's move will dramatically increase premiums for 2019 for millions of homeowners and small business owners. "Association president Scott Serota said in a statement." This will jeopardize Americans' access to affordable coverage, especially those who are most in need of medical care. "
Serota noted that the payments are required by law, and said that he believes that the administration has the legal power to continue court cases.The US health insurance plans, the main trade group of health insurance, said in a statement that he was "very discouraged" by the Trump administration's decision to freeze payments.
"Costs for taxpayers will increase as the federal government will spend more on subsidies on premiums, "the group said.
Rumors that the Trump administration would freeze payments were circulating last week. But the Saturday announcement by e-mail It was unusual for such an important stage.
The administration argued in its announcement that his hands were tied by conflicting court decisions in New Mexico and Mbadachusetts
. the administration was disappointed by a New Mexico court decision that questioned the operation of the risk program for insurers.
The administration asked the court to reconsider its decision and hopes for a speedy resolution that will allow the government to prevent further. She said:
More than 10 million people are currently buying individual health insurance plans via HealthCare.gov and the state insurance markets. The vast majority of these clients are receiving taxpayer grants under the Obama Health Act and would be protected from premium increases next year.
The weight of price increases would fall on middle-clbad consumers who are not eligible for income. Well-founded grants Many of them are self-employed and small business owners, usually considered a Republican constituency.
The latest outbreak of obamacare does not affect most people with employer coverage.
Source link
Tags administration amp hit Obamacare takes Trump
