Trump Administration’s Latest Move “Will Create More Market Uncertainty and Increase Premiums”

The latest attack on the Affordable Care Act from Washington Republicans is once again poised to create additional uncertainty in Nevada: The Trump Administration announced in recent days that it will cut off billions of dollars in risk adjustment payments required under the ACA to even out the cost of providing coverage to the sickest patients.

Rosen for Nevada spokesperson Molly Forgey released the following statement:

“President Trump is still trying to dismantle and sabotage the Affordable Care Act any way he can, and Sen. Heller is still to this day working to repeal and replace it with his own radical health care plan. Their actions in Washington have already created disruption and increased premiums, and they keep pushing a partisan agenda that will make Nevadans’ health care more expensive instead of actually working to find real solutions that lower costs. Nevada voters know who’s to blame for this sabotage, and they will hold Sen. Heller accountable in November.”

The Nevada Independent: Health exchange faces additional uncertainty after Trump administration announces halt to risk adjustment payments

By Megan Messerly

July 10th, 2018

Key points:

Nevada’s health insurance exchange was injected with yet another dose of uncertainty over the weekend after the Trump administration announced it was stopping payments to insurance companies required under the Affordable Care Act to even out the burden of providing coverage to the sickest patients.

… CMS now says that it will not make $10.4 billion in risk adjustment payments due to insurers this fall for last year’s expenses.

“The conversation that I had with CMS today was enlightening in that they recognized that this was very disruptive,” Korbulic said.

Experts, too, criticized the move over the weekend as unnecessarily disruptive. Andy Slavitt, who served as CMS administrator during the Obama administration, called the announcement “aggressive and needless sabotage” in a tweet over the weekend and urged insurers not to “withdraw or over-react.”

It’s an additional dose of instability injected into exchanges across the country that responded to the end of cost-sharing reduction payments last October, saw a repeal of the individual mandate in December and face ongoing threats from the expansion of association health plans and short-term limited duration plans.

Nevada’s exchange also briefly faced the threat of having 14 counties go without any health insurance options available to them on the exchange after several carriers pulled out of the market.

“This decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own,” America’s Health Insurance Plans said in a statement. “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. And costs for taxpayers will rise as the federal government spends more on premium subsidies.”