In its latest move to undermine the Affordable Care Act (ACA), the Trump administration is suspending billions of dollars in payments under the legislation known as risk adjustment. But a month later a federal judge in New Mexico said it was.
The so-called "risk adjustment" program takes payments from insurers with healthier customers and redistributes that money to companies with sicker enrollees. Payments for 2017 are $10.4 billion. The fund would be separate from the federal risk adjustment payments and could allow the insurers to reduce their requested rate increases by as much as 30 percent. The group further added that it was worrying to see that the decision was made during a time when they were reviewing the premiums for the year 2019.
When the ACA was passed in 2010, one of the most important tenets of the law was the rule stating that insurers must accept all patients regardless of their health history. More will lose their insurance this year with this latest attack on the ACA. The mandate was created to stabilize the health insurance market by encouraging younger and healthier Americans to sign up for insurance, and the repeal could consequently have the opposite effect.
Frank Pallone called the cuts more "sabotage" from the administration.
The administration, however, was not compelled to halt the payments on the basis of this ruling.
But in January, in a separate case, a federal district judge in MA upheld the government formula used to calculate the payments.
In addition to encouraging private insurers to shun less healthy people, it will raise premiums. The administration could just as easily have listened to a judge in MA who ruled the opposite way or awaited the results of an appeal. "Again, previous year you heard a lot of that".
What is usually referred to as risk adjustment payments, aims to protect insurance companies from making hefty losses during their service delivery to the people. About 20 million Americans have received health insurance coverage through the program. These limited benefit plans will compete directly with the comprehensive insurance on the exchanges, and navigators will be forced to sell consumers on them.
"It's also taking legal action to abandon the protection for people with pre-existing conditions". Pregnancy could be one of these. Association health plans were expanded earlier this year by the administration as a lower cost offering for Americans.
ACA enrollment has held steady at 12 million people.
This plan has now been rebranded and was issued by the Health Policy Consensus Group on June 19 in the form of "Policy Recommendations to Congress".
As for the priority given to applicants that help spread the word about non-ACA health plans, Edwards said: "It's inappropriate". The other half are covered by expanded Medicaid.
As part of its war on the working class, the White House has also authorized states to impose work requirements for Medicaid, the health insurance program for the poor jointly administered by the federal government and states, and in the Supplemental Nutrition Assistance Program (SNAP, food stamps).
Google is blocking the World Socialist Web Site from search results.