Trump Suspends Billions in Obamacare Payments

The Trump administration on Saturday suspended a program that pays billions of dollars to insurers under the Affordable Care Act, a move expected to upset markets and drive premiums up this fall. White House officials said the decision was made to halt the payments after a federal court in New Mexico ruled in February that the formula used to calculate the so-called risk adjustment payments was flawed. The payments are meant to protect health insurers from major losses and deter them from prioritizing healthy consumers over those with pre-existing conditions. Critics have condemned the freeze as the Trump administration’s latest attempt to sabotage the Affordable Care Act, while health insurers warn it will destabilize markets at a particularly bad time. “This action will significantly increase 2019 premiums for millions of individuals and small business owners and could result in far fewer health plan choices,” Blue Cross Blue Shield Association President and CEO Scott Serota said in a statement. “It will undermine Americans’ access to affordable coverage, particularly those who need medical care the most.”