Health Insurers Warn of Market Turmoil as Trump Suspends Billions in Payments

The Trump administration has announced the suspension of a program that pays billions of dollars to insurers to stabilize health insurance markets under the Affordable Care Act (ACA), which insurers say could unbalance the markets and cause premium elevations this fall, according to the New York Times . Many insurers that enroll large numbers of unhealthy people rely on these "risk adjustment" payments, which are designed to lower incentives for insurers to seek out healthy consumers and block those with chronic illnesses and other pre-existing conditions. "Any action to stop disbursements under the risk adjustment program will significantly increase 2019 premiums for millions of individuals and small-business owners, and could result in far fewer health plan choices," warns Justine G. Handelman with the Blue Cross and Blue Shield Association. "It will undermine Americans' access to affordable care, particularly for those who need medical care the most." Administration officials said their decision to suspend payments is based on a federal district court ruling in February in which the judge rejected the formula used to calculate payments on the grounds that it was flawed. ACA advocates contend the move is another attempt by President Trump to weaken the health law. America's Health Insurance Plans CEO Matt Eyles expects costs to taxpayers to increase because the government provides subsidies that rise along with premiums; those subsidies will continue for low- and moderate-income citizens.