Health Insurance Rates to Skyrocket after Federal Court Ruling against Obamacare that Takes Money from the Healthy to Fund High-Cost Plans

Wiki
image_pdfimage_print

The Trump administration is halting billions in payments to health insurance companies after a federal court in New Mexico ruled that the federal government was using an inaccurate formula for allocating payments from the risk adjustment program of Obamacare that takes funds from plans with lower-risk healthy enrollees and gives it to plans that cover people who need more care and are expected to have high medical costs.  The government agency, the Centers for Medicare and Medicaid Services (CMS), claims that the ruling ties its hands and prevents it from making any further collections or payments until litigation is complete.

The Trump administration halted billions of dollars in payments to health insurers after the Centers for Medicare and Medicaid Services, the agency that administers programs under Obamacare, announced on Saturday it was freezing payments to insurers that cover sicker patients, saying a federal court ruling ties its hands. The move brought a sharp response from health insurers warning of market disruptions and even higher costs.

The payments are intended to help stabilize health insurance markets by compensating insurers that had sicker, more expensive enrollees in 2017. The government collects the money from health insurers with relatively healthy enrollees, who cost less to insure.

In a Saturday announcement, the CMS said the move was necessary because of a February ruling by a federal court in New Mexico, which found that the federal government was using an inaccurate formula for allocating the payments; it added that the trial court in New Mexico “prevents CMS from making further collections or payments under the risk adjustment program, including amounts for the 2017 benefit year, until the litigation is resolved.”

The CMS, which is part of the Department of Health and Human Services, added that the court’s ruling bars the agency from collecting or making payments under the current methodology, which uses a statewide average premium, Bloomberg reported.

We were disappointed by the court’s recent ruling. As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold.” CMS Administrator Seema Verma said in the agency’s statement.

“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,” Verma said.

The risk adjustment program of the Affordable Care Act redistributes funds from plans with lower-risk enrollees to plans with higher-risk enrollees, helping to ensure that sicker individuals can receive coverage by sharing the cost of covering them. The immediate impact of the decision will be to boost healthcare costs for millions of Americans even higher, unleashing even higher inflation for staples, at a time when the Fed is keeping a close eye on rising costs.

Predictably, advocates of the risk adjustment program, and Obamacare in general, were outraged.

Risk adjustment “has been long supported and embraced by both Republicans and Democrats,” said Scott Serota, president of the Blue Cross Blue Shield Association.

“This action will significantly increase 2019 premiums for millions of individuals and small business owners and could result  in far fewer health plan choices,” Serota said in a statement. “It will undermine Americans’ access to affordable coverage, particularly those who need medical care the most.”

The trade group America’s Health Insurance Plans said in an emailed statement that “We are very discouraged by the new market disruption brought about by the decision to freeze risk adjustment payments.” It added that the move comes at a critical time when insurance providers are developing premiums for 2019 and states are reviewing rates.

“This decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own. 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,” AHIP said.

AHIP urged “a quick resolution is needed to avoid greater harm to the individual and small group markets,” while Serota said CMS “has the legal justification needed to move forward with the payments regardless of the New Mexico ruling, and  should do so.”

Read full article here…

Related Post

Visit our Classified ads.

Check out our Classified ads at the bottom of this page.

Recent stories & commentary

Kakistocracy

Tucker Carlson Describes Trump’s Expression of Faith in US Intelligence Agencies as a ‘Hostage Tape’

July 20, 2018 Fox News 0

Tucker Carlson called Trump’s capitulation to the intelligence community’s line that Russia is a major threat a ‘hostage tape.’ Tucker then gave examples of how US intelligence agencies, the deep state, and NGOs, have kept America in wars for the past 20 years, including the invasion of Iraq, the killing of Libyan President Moamar Gadhafi, and the prolonged Syrian war that led to open borders in Europe. […]

Politics

New TV Series Pranks Celebrities into Making Outrageous Statements

July 19, 2018 Youtube 1

In a new TV series on Showtime, Sacha Baron Cohen poses as a TV journalist or film producer and, in that disguise, lures celebrities into making outrageous statements on camera or endorsing outrageous proposals. Famous figures caught in the trap include former Congressman Joe Walsh, Senator Bernie Sanders, Former Alaska Governor Sarah Palin, former VP Dick Cheney, and Larry Pratt, former head of Gun Owners of America. Cheney was given a waterboard to sign and actually did it. In two episodes, Cohen posed as a gun-rights advocate from Israel who wanted to interview Walsh and Pratt on the advantages of teaching gun safety and shooting skills to children as well as adults. Not suspecting that they were being lured into a trap, they both concurred with Cohen’s suggestion that kids are never too young to learn these things. When he said they should be taught starting at sixteen all the way down to three, they foolishly agreed. From that moment, forward, the thrust of the episode was that these men want to give loaded guns to three-year-olds. […]

Uncategorized

London’s Metropolitan Police Failed to Record 100,000 Crimes, Including Rape

July 18, 2018 Breitbart 0

A police watchdog group reported that police officers in London often failed to record crimes, including domestic abuse and violence when they occurred alongside other crimes.  Almost one in ten sexual offense crimes, including rape, were not recorded.  They also neglected to record some low-level crimes.  More than half of people in the UK have lost confidence in the police.  Meanwhile, hate crimes are rigorously investigated, and a George Soros-linked NGO is working with police to fund enforcement for hate crime laws. […]

Money

Las Vegas: MGM Sues Victims of Mass Shootings and Denies Responsibility!

July 18, 2018 ZeroHedge 0

MGM is claiming that a 2002 federal law extends liability protection to any company that uses ‘anti-terrorism’ technology or services that can prevent and respond to mass violence, and MGM hired security for the concert that was certified by the Department of Homeland Security.  A victims’ attorney says that only the security company is protected from liability under the federal law and MGM is still on the hook for liability.  […]

Uncategorized

Unmasked: Matt Rivitz, Founder of Sleeping Giants, Organized Social Media Mobs Against Breitbart and Other Conservatives

July 17, 2018 Daily Caller 0

Sleeping Giants organized campaigns on social media and through leftist media outlets to apply pressure against advertisers who support conservatives until they pull their ads.  Breitbart lost 90% of its advertisers in ​two​ months.  ​It is ironic that the agents in Sleeping Giants, who are linked to the advertising industry, want to keep their identities hidden to ​prevent counter-boycotts against their own clients. […]

Classifieds

For classified advertising rates and terms, click here. The appearance of ads on this site does not signify endorsement by the publisher. We do not attempt to verify the accuracy of statements made therein or vouch for the integrity of advertisers. However, we will investigate complaints from readers and remove any message we find to be misleading or that promotes anything fraudulent, illegal, or unethical.

For Sale

Titanic: A Perfect Crime, a novel by Patrea Patrick, explores little known facts of that famous tragedy and provides jaw-dropping insights to new discoveries that came with the finding of the 100-year-old ship wreck. The book’s scenario of what really happened that fateful night is amazingly consistent with the historical record. No other theory explains so many parts of the mystery. (More)

 

 

 


Offline is a documentary on the inevitability of the Earth being slammed by a mega solar flare – not the common type that interrupts communications and creates a light show in the Northern skies – but the big brothers thousands of times more powerful. These monsters deliver enough energy to blow apart the master transformers that supply the planet’s energy grids. When that happens, the lights go out for longer than anyone wants to think about. These X-Class solar storms hit the Earth every 150 years, on average. The last one arrived 156 years ago. We are overdue (More)

 


Ten Days at Jekyll Island, a novel by Patrea Patrick, tells the true story of a secret meeting held in November of 1910 on a privately owned resort island, the outcome of which drastically changed the world. It was at this meeting that a banking cartel was forged; a cartel that, three years later, would be issued a government charter to do business as The United States Federal Reserve System. You will discover why secrecy was essential. Based on historical documentation from The Creature from Jekyll Island by G. Edward Griffin. (More)

 


1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
Rollin Shultz Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Rollin Shultz
Guest
Rollin Shultz

I am shocked that the insurance companies would be against this! Oh my. Serota is of course trying to fear monger readers of the article and make it sound like it is a bad thing for customers, not a bad thing for huge insurance company profits.