Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

underpants

(182,632 posts)
Sun Jul 8, 2018, 09:28 AM Jul 2018

Trump stops payment on "Obamacare" risk adjustments - *FYI* different than risk corridors

Trump admin temporarily halting some payments under Obamacare program
https://www.cnn.com/2018/07/07/politics/wsj-aca-risk-adjustment/index.html

The Trump administration announced Saturday that it will temporarily halt billions of dollars in payments under the Affordable Care Act's risk adjustment program, a move that could shake up insurance markets.

The Wall Street Journal was the first to report the expected suspension of the payments. The payments insurers expected this fall, based on their 2017 business, amounted to $10.4 billion.

Risk adjustment is a key aspect of market stabilization under the ACA, also known as Obamacare. The program transfers funding from plans with lower-risk enrollees to higher-risk ones in an effort to even out the market and "encourage insurers to compete based on the value and efficiency of their plans rather than by attracting healthier enrollees," according to the Kaiser Family Foundation.

Sen Rubio is credited with stopping Risk Corridor payments in a 2015 Appropriations bill. It is in legal limbo now.
http://knowledge.Wharton.upenn.edu/article/significance-risk-corridors-lawsuits/




This Kaiser Family Foundation article explains the differences very plainly. Table 1 (can't copy it intact) lays it out very simply.
Adjustment, Reinsurance, and Risk Corridors
https://www.kff.org/health-reform/issue-brief/explaining-health-care-reform-risk-adjustment-reinsurance-and-risk-corridors/




Latest Discussions»General Discussion»Trump stops payment on "O...