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Trump administration halts billions in insurance payments under Obamacare
11 July 2018, 05:22 | Silvia Roy
Justin Sullivan Getty Images North America
The risk adjustment program redistributes funds from plans with lower-risk enrollees to plans with higher-risk enrollees. Almost half of us living in North Dakota have a pre-existing condition and could be found "left out in the cold" without insurance.
"We were disappointed by the court's recent ruling".
"When the rules of the game change after the fact - insurers don't necessarily see the federal government as a particularly reliable partner right now", Levitt says.
The Affordable Care Act's (ACA) "risk adjustment" program is meant to incentivize health insurers to cover individuals with pre-existing and chronic conditions by collecting money from insurers with relatively healthy enrollees to offset the costs of other insurers with sicker ones, according to Reuters.
"The risk adjustment formula was extremely biased in favor of large, established insurers and discriminated against new and small insurers, including co-ops like ours", Hickey told The New York Times on July 7.
In the MA case, however, a federal judge upheld the Obamacare formula, the Journal reports.
"As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold", she said.
For the past five years, when insurance has been available through ACA marketplaces for people who do not have access to affordable health benefits through a job, federal health officials have started every spring working with navigator groups on plans for the coming enrollment season. "It will create more market uncertainty and increase premiums for many health plans - putting a heavier burden on small businesses and consumers, and reducing coverage options".
President Barack Obama's signature law, the Affordable Care Act was signed into law in March 2010.
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Trump administration freezes risk adjustment payments
Eventually, experts say, some insurers could simply get fed up and exit ObamaCare markets, leading to fewer choices for consumers. The agency says the court ruling also prevents it from collecting additional risk-adjustment funds until the issue is resolved.