A sudden reversal of the Trump administration’s decision to suspend risk adjustment payments just three weeks ago means the program paying billions to insurers in order to stabilize health insurance markets is back.
On Tuesday night, the Centers for Medicare & Medicaid Services (CMS) released a final rule that gave the government the okay to resume payments.
Last month a New Mexico court ruling halted the program’s payments and caused an uproar from critics claiming insurance premiums would subsequently rise due to uncertainty surrounding the formula used to calculate the payments. Check out The Hertel Report’s story on the ruling for more information.
Thousands of physicians and numerous medical organizations banded together to push back on the administration’s decision to halt payments. A letter was sent to CMS administrator Seema Verma warning her of the significant impact the ruling and delay from CMS could have on the health insurance marketplace.
CMS’ decision to hit pause on the program was a surprise for insurers and created an air of wariness around Affordable Care Act markets.
Payments are to resume Oct. 22. Seema Verma said health plans that voiced concerns regarding withdrawal from markets “should be assured by our actions today.”
“Alleviating concerns in the market helps to protect consumer choices,” she said.
Republicans in Congress also urged the Trump’s administration to resume the program in fear of being blamed for higher premiums come midterm elections, according to the New York Times.
Read the NY Times article here,
Or check out POLITICO’s piece on the matter.
To read more about what critics had to say of the suspension, click here.
For CMS’ final rule, click here.