Maryland insurers say Trump Administration to cut health payments destabilizes market

Maryland insurers say Trump Administration to cut health payments destabilizes market

The news comes in the wake of a ruling by a U.S. District Court judge in New Mexico which says the Center for Medicare and Medicaid Services (CMS) payment program is legally flawed. Payments for 2017 are $10.4 billion.

The Blue Cross Blue Shield Association, whose members are a mainstay of Affordable Care Act coverage said it was "extremely disappointed" with the administration's action.

While imperfect, the risk adjustment program "has helped promote market stability over the past five years", Wehrle said. "As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold".

In the meantime, some health insurers are potentially out billions of dollars.

In the MA case, however, a federal judge upheld the Obamacare formula, the Journal reports.

Reuters' characterization of the move is that "President Donald Trump's administration has used its regulatory powers to undermine Obamacare after the Republican-controlled Congress previous year failed to repeal and replace the law". "In light of this analysis, the Government can not lawfully make the cost-sharing reduction payments", the White House said after ending the payments in October 2017.

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"Without a quick resolution to this matter, this action will significantly increase 2019 premiums for millions of individuals and small business owners and could result in far fewer health plan choices". The Trump administration claims it is obligated to suspend these payments because of a court ruling out of New Mexico questioning their legality, but there is reason to be skeptical.

"Republicans are doing a bang up job ensuring they are properly blamed for health care rate hikes this fall", Matt House, a spokesman for Senate Democratic Leader Chuck SchumerCharles (Chuck) Ellis SchumerAn end game on Supreme Court nominations Liberals forget Constitution as Supreme Court battle fires up Anti-Trump protesters sing national anthem outside rally MORE (N.Y.), said in a Monday tweet".

The move by CMS may affect publicly traded insurers that have stuck with Obamacare, such as St. Louis-based Centene Corp. About 20 million Americans have received health insurance coverage through the program known as Obamacare. "CMS has asked the court to reconsider its ruling, and hopes for a prompt resolution that allows CMS to prevent more adverse impacts on Americans who receive their insurance in the individual and small group markets", CMS Administrator Seema Verma said in a July 7 statement.

"It has caused insurer collapses and market exits that reduced competition".

The New Mexico ruling found fault with the formula used by the government to calculate the payments, saying it was "arbitrary and capricious". "It moves us back to some extent to the status quo where people with pre-existing conditions found it very hard to get insurance".

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