Trump administration halts billions in insurance payments under Obamacare

U.S. President Donald Trump makes a statement on health care while standing with 'victims of Obamacare' at The White House on July 24, 2017 in Washington, DC.

Chris Kleponis | Pool | Getty Images

U.S. President Donald Trump makes a statement on health care while standing with ‘victims of Obamacare’ at The White House on July 24, 2017 in Washington, DC.

The Trump administration on Saturday halted billions of dollars in payments to health insurers under the Obamacare healthcare law, saying of which a recent federal court ruling prevents the money via being disbursed.

The Centers for Medicare in addition to Medicaid Services, which administers programs under the Affordable Care Act, said the action affects $10.4 billion in risk adjustment payments.

President Donald Trump’s administration has used its regulatory powers to undermine Obamacare after the Republican-controlled Congress last year failed to repeal in addition to replace the law. About 20 million Americans have received health insurance coverage through the program.

The payments are intended to help stabilize health insurance markets by compensating insurers of which had sicker, more expensive enrollees in 2017. The government collects the money via health insurers with relatively healthy enrollees, who cost less to insure.

CMS, which can be overseen by the U.S. Department of Health in addition to Human Services, said the move was necessary because of a February ruling by a federal court in fresh Mexico, which found of which the federal government was using an inaccurate formula for allocating the payments.

“We were disappointed by the court’s recent ruling. As a result of This specific litigation, billions of dollars in risk adjustment payments in addition to collections are at This specific point on hold,” CMS Administrator Seema Verma said in a statement.

A federal court in Massachusetts upheld the same allocation formula in January.

The CMS statement said the agency has asked the fresh Mexico court to reconsider its decision in addition to expressed expect for a prompt resolution of the issue.

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