Health care premiums could rise following Trump administration's

Fargo North Dakota. President Trump held a campaign style

"Suspending the Risk Adjustment Program is the Trump administration's latest attempt to do administratively what they couldn't do legislatively: dismantle the Affordable Care Act", he said. Insurers are already saying the decision will force them to set their premiums even higher in 2019 to make up for this uncertainty, which is likely to price more people out of the market.

Democrats say that the cuts are more evidence of Trump officials sabotaging the health law. The move brought a sharp response from health insurers warning of market disruptions and higher costs. The idea is to insulate insurance companies from the cost of enrolling people with pre-existing conditions, and remove the incentive for insurance companies to cherry pick healthy people.

The Affordable Care Act's (ACA) "risk adjustment" program is meant to incentivize health insurers to cover individuals with pre-existing and chronic conditions by collecting money from insurers with relatively healthy enrollees to offset the costs of other insurers with sicker ones.

On Feb. 28, 2018, a federal judge in New Mexico decided that the use of the statewide average premium formula to calculate risk adjustment payments was flawed.

"This decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own". To do that, the government collects money from health insurers with enrollees who were healthier and as a result "cost less to insure".

Levitt says the administration's announcement was "a little perplexing", given that the legal fight over the conflicting rulings in New Mexico and MA is still ongoing.

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The administration is taking legal steps to challenge the ruling in New Mexico, says Levitt. America's Health Insurance Plans said it was "very discouraged" by the CMS' decision, which comes as insurers determine their premiums for 2019 and states review those proposals.

CMS provided a timeline, noting that after the February 28 decision by the New Mexico federal court, it filed a motion for reconsideration, and on June 21 the court held a hearing on it. CMS is waiting for the court's ruling, it said.

In January this year, the federal district judge in MA upheld the methodology used by the federal government to calculate risk adjustment payments.

"As the Exchange has grown in visibility and become more familiar to Americans seeking health insurance, the need for federally funded Navigators has diminished", CMS said in a statement on Tuesday.

CMS cites the late February court ruling in deciding to place a freeze on the $10.4 billion which it collected previous year, and which ordinarily would be dispersed among high-risk insurers. The CMS has asked Judge Browning to reconsider his ruling and is awaiting a decision.

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