Trump committed to defunding Obamacare, premiums expected to skyrocket in 2019
People who acquire coverage on their own or through small business will be impacted the most.
The Trump administration is withholding billions of dollars in Obamacare payments to health insurers, a move that could cause premiums to rise in 2019.
The Trump administration is withholding billions of dollars in Obamacare payments to health insurers, a move that could cause premiums to rise in 2019, reports USA Today.
The Centers for Medicare & Medicaid Services said in a statement on Saturday that it would stop payments after a federal district court in New Mexico decided in February the payments were based on flawed rules.
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“CMS is seeking a quick resolution to the legal issues raised and will inform stakeholders of any update to the status of collections or payments at an appropriate future date,” the agency said in a statement.
The GOP’s commitment to repealing Obamacare without a replacement earlier this year didn’t work so now they’ve taken aim at the Affordable Care Act by defunding the program.
USA Today reports that the Centers for Medicare & Medicaid Services on Saturday said it was putting “on hold” its “risk adjustment” program. The payments protect insurers from big losses.
The health plans pay into a pool — this doesn’t involve tax dollars — and funds are transferred to insurers that ended up with many high cost patients, according to reports. In 2017, $10.4 billion was involved.
The Trump administration is causing an unnecessary “new market disruption.”
“This decision comes at a critical time when insurance providers are developing premiums for 2019 and states are reviewing rates,” the trade group America’s Health Insurance Plans said in a statement.
“This decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own.”
“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,” said Scott Serota, president and CEO of The Blue Cross Blue Shield Association in a statement.
“It will undermine Americans’ access to affordable coverage, particularly for those who need medical care the most.”
