Trump administration halts billions in Obamacare payments to health insurers

President Donald Trump speaks about health care from the White House in Washington. The Trump administration says it’s freezing payments under an Obamacare program that protects insurers with sicker patients

The announcement was made by Seema Verma, the administrator of the Centers for Medicare and Medicaid Services, and was precipitated by a New Mexico court ruling that suggested the calculations for the risk-adjusted premiums were flawed even despite a MA ruling that validated them.

Seema Verma, administrator of the Centers for Medicare and Medicaid Services, listens during a meeting on healthcare reform at the White House.

The calculated risk adjustment payment for 2017 was $10.4 billion, according to CMS.

It's freezing a program that takes payments from insurers with healthier customers and redistributes that money to insurers with sicker customers, in order to protect those insurers from financial losses, the Associated Press reported.

The Trump administration is eliminating most of the funding for grass-roots groups that help Americans get Affordable Care Act insurance and will for the first time urge the groups to promote health plans that bypass the law's consumer protections and required benefits. Health law experts are... "There is a need to analyze insurers case-by-case and account for their competitive landscapes", said Tinglong Dai, an associate professor of operations management and business analytics at the Johns Hopkins University Carey Business School. "It has also led to upstarts, small plans and unprofitable ones paying billions of dollars to larger, more established and profitable insurers".

Officials said Saturday that the administration is acting because of conflicting rulings in lawsuits filed by some smaller insurers who question whether they're being fairly treated.

As reported in The New York Times, the payments seemed created to benefit larger insurers.

Meghan Markle & Prince Harry Get Hands-On Attention in Dublin
Despite a jam-packed itinerary, Markle has managed more outfit changes in just about 24 hours than Beyoncé in concert. Up next, Harry and Meghan are jetting off to Dublin, Ireland, for an official two-day visit to the country.

Over the weekend arrived some fresh political fury that the Trump Administration is trying to sabotage ObamaCare by suspending something called "risk adjustment" payments. "It moves us back to some extent to the status quo where people with pre-existing conditions found it very hard to get insurance". "That will increase competition, and competition will help keep prices down".

"We are very discouraged by the new market disruption brought about by the decision to freeze risk adjustment payments", AHIP stated. He warned of "turmoil" as insurers finalize their rates for 2019. The White House supported two attempts in Congress past year to repeal the program, which insures about 20 million Americans.

"Costs for taxpayers will rise as the federal government spends more on premium subsidies", the group said.

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. "So it seems like an extreme step to halt this program nationally based on a decision by one district court judge". On the same day, Minuteman Health, Inc. filed a similar complaint in district court in MA.

A federal court in MA upheld the same allocation formula in January.

The CMS said a February federal court decision in New Mexico, which ruled it was using a flawed formula to determine its collections and payments amounts, prevented it from continuing the program.

Related News:

  • Anderson scripts incredible comeback to dethrone Federer

    Anderson scripts incredible comeback to dethrone Federer

    Federer, meanwhile, had his serve broken four times - the first four times his serve was broken during this Wimbledon run. The top-seeded Federer double faulted for the first time in the match when serving at 11-11, 30-30.
    Instagram Model Bitten By A Shark While Trying To Take Pictures

    Instagram Model Bitten By A Shark While Trying To Take Pictures

    Anyway, Katarina was swimming around with them when one of them obviously mistook her arm for a tasty morsel and bit down on it. An Instagram model has been bitten by a shark whilst trying to get a picture with them, floating in a marina.

    Not Even a Wrist Slap: Facebook Fined £500k in UK

    Meanwhile, the ICO has sent warning letters to 11 political parties, compelling them to agree to audits of their data protection practices.
  • Jones earns 1st career Cup win at Daytona

    Jones earns 1st career Cup win at Daytona

    Brad Keselowski won the battle off of pit road and would lead the field at the start of stage 2 in the Coe Zero 400 at Daytona. With 36 laps to go Larson had a tire go down and Stenhouse Jr. drove into the rear of the No. 42 Chevrolet.
    Oregon Ranchers Charged with Arson, Pardoned by President Trump

    Oregon Ranchers Charged with Arson, Pardoned by President Trump

    In a statement Tuesday, White House press secretary Sarah Sanders called that decision to resentence the Hammonds "unjust". The announcement came as President Trump set out for North Atlantic Treaty Organisation meetings in Brussels, Belgium.
    Israel shoots down Syria drone; Netanyahu meets Putin

    Israel shoots down Syria drone; Netanyahu meets Putin

    This is the second time in a month that Israel has intercepted a drone flying in from Syria. The drone had come from Syria, traveled into Jordan, and then crossed over into Israel.
  • Paris to install giant screen at Eiffel Tower for World Cup final

    Paris to install giant screen at Eiffel Tower for World Cup final

    So, I was excited for Italia '90. "Straight after that game you want the floor to eat you up. It does hurt to see photos like that", the 55-year-old told Daily Mail.
    Jack Wilshere joins West Ham on three-year deal after Arsenal exit

    Jack Wilshere joins West Ham on three-year deal after Arsenal exit

    Wilshere made 197 first-team appearances for Arsenal and was part of the 2014 and 2015 FA Cup-winning sides. "It feels good and of course my family and a few of my friends are West Ham fans so everyone's buzzing".
    England and Belgium to win

    England and Belgium to win

    He hopes England will be more suited to their style of play, but added that recovering from two extended games will be hard . Spartak Moscow winger Alexander Samedov also confirmed he is retiring from worldwide football after Russia's defeat.
  • Senator Graham Slams Democratic Dissent of Kavanaugh

    Senator Graham Slams Democratic Dissent of Kavanaugh

    Kavanaugh would be confirmed, and voters' attention could return to Trump's behavior, health care , tariffs and other issues. If confirmed, he would replace retiring Supreme Court Justice Anthony Kennedy , for whom Kavanaugh once clerked.
    TS Chris begins NE path in Atlantic Ocean

    TS Chris begins NE path in Atlantic Ocean

    She added: "The weather we will be seeing after Chris is not particularly windy, but we could see rain moving in from the west". Hurricane Chris is expected to bring heavy rainfall and strong winds to the southeastern half of Newfoundland.
    Kylie Jenner Is About To Become The Youngest Self-Made Billionaire

    Kylie Jenner Is About To Become The Youngest Self-Made Billionaire

    Kylie Cosmetics has sold $630 million worth of make up since its inception and Kylie own 100% of Kylie Cosmetics . In comparison, Kim Kardashian West is estimated to be worth around $ 350 million .


Most liked

Prince Louis's christening: Royals to gather for baptism at St James's Palace
But the heirs refuse to let the pressure of palace life affect the next generation of royals. Monday was also the first time the five Cambridges have been seen together.

Lisa Murkowski is ‘annoyed’ with prejudging of Trump’s Supreme Court pick
On Tuesday's "PBS NewsHour", Senator Orrin Hatch (R-UT) stated, "I don't think anybody is going to overturn Roe v. Wade "is sent to the ash heap of history".

Prosecutors: Manafort says he's treated like 'VIP' in jail
Ellis said he made that decision in response to Manafort's complaints about the difficulty in getting ready for the trial. In the last three weeks alone, he's had more than 100 phone calls with his lawyers and more than 200 with other people.

Donald Trump says Germany is 'totally controlled by Russia' at North Atlantic Treaty Organisation summit
While he then went over the top in saying " Germany is totally controlled by Russia ", Mr. How did leaders respond to Trump's tirade? "We're protecting everybody", he said.

Murdoch's 21st Century Fox Ups Sky Bid to Beat Rival Comcast
The world's biggest entertainment company and owner of NBC and Universal Pictures gate-crashed Murdoch's bid for Sky in February . Fox, which already owns 39 percent of Sky, said it had secured the agreement of the independent committee of Sky for the deal.

Raab succeeds Davis as Brexit secretary
Theresa May raised the prospect of a Jeremy Corbyn-led government to appeal for Tory unity on Brexit. But the appointment of Raab, a leading Brexit supporter, suggests Tory Brexiteers are divided.

Wimbledon Keeps a Stiff Upper Lip as Football Fever Grips England
There had been talk of the World Cup final being shown on the big screen on Henman Hill at Wimbledon but that has been ruled out. The final will be played at the Luzhniki Stadium in Moscow.

Is it 'coming home'? Goldman Sachs reveals World Cup victor prediction
It's up to us now which games we play in". "Hopefully they'll just get their heads down, work hard and get the win for us". Gazza was of course one of the star players the last time England played in an World Cup semi-final back in 1990.

England fans pack pub
Despite a valiant effort, the team will come home without the Jules Rimet trophy after losing the semi final 2-1 to Croatia . The game will kick off in Saint Petersburg on Saturday, before Croatia play France in the final in Moscow on Sunday.

Gareth Southgate happy to see England’s World Cup run unite country
England's midfielder Jordan Henderson and Gareth Southgate at the Luxhniki Stadium. "I would just walk out of the room". I couldn't listen to it for 20 years, frankly", said Southgate .

UK police say they've spoken to surviving nerve-agent victim
Lorna Wilkinson, the hospital's director of nursing, said: "While this is welcome news, clearly we are not out of the woods yet". Britain and its allies blamed Russia for the attack on the Skripals, prompting a major Western expulsion of Russian diplomats.

Arsenal sign Uruguay midfielder Torreira
Emery, preparing for his first season as Arsenal manager, said: 'We are delighted Matteo is joining us. Unfortunately for Tottenham, Arsenal are landing Torreira just as they are said to be losing Dembele.

Ronaldo to Juventus: Champions never tire of new challenges, says Pele
The 13-time Champions League winners believe the Belgian striker is the one to fill Ronaldo's boots in Madrid next season. Manchester United chose not to sign Ronaldo due to their interest in his Real Madrid team-mate Gareth Bale.

Embassy warns Americans to keep 'low profile' during Trump visit
Their visit to Blenheim Palace will begin with a military ceremony performed by Scottish, Irish and Welsh Guards. She pointed out there are many issues that legislators have urged her to raise with her American counterpart.

Officer investigated for failing to help woman being harassed about citizenship
In a statement posted to Twitter , the Forest Preserves of Cook County said, "We are aware of the the June 14 incident and video". A video that went viral on Monday has earned a Chicago police officer desk duty for an incident that happened a month ago.