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Trump Administration Resumes Obamacare Payments

The Trump administration is resuming Obamacare’s risk adjustment program, just weeks after it abruptly froze billions of dollars in insurer payments citing a court ruling invalidating parts of the program.

The Trump administration is resuming Obamacare’s risk adjustment program, just weeks after it abruptly froze billions of dollars in insurer payments citing a court ruling invalidating parts of the program.

CMS on Tuesday night issued a final rule that it said clarifies the program methodology and addresses issues raised earlier this year by a federal judge, clearing the way for the government to begin making payments again.

“Issuers that had expressed concerns about having to withdraw from markets or becoming insolvent should be assured by our actions today,” CMS Administrator Seema Verma said.

The risk adjustment program, created to protect Obamacare insurers that attract sicker and more expensive customers, has been targeted in court by some companies that allege it penalizes smaller startup health plans.

Caroline Cournoyer is GOVERNING's senior web editor.
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