CMS Proposes Rule to Reduce ACA Premiums

///CMS Proposes Rule to Reduce ACA Premiums

CMS Proposes Rule to Reduce ACA Premiums

On Thursday, the Center for Medicare and Medicaid Services (CMS) announced a proposed rule that aims to cut fees for those enrolled in the Affordable Care Act (ACA). This act can potentially eliminate silver-loading within the health insurance market.

The practice of silver-loading is when premiums are heavily increased onto silver-level exchange plans, which are incredibly popular in the health insurance markets. With the heavy increase on premiums, more premium tax credits are accessible for those with low incomes.

The rule that the CMS proposed on Thursday would be set in place for 2020 in an effort to reduce premiums in the same year. Supported by the Trump admininistration, the rule would allocate funding for cost sharing reduction (CSR) payments. This rule supports the Trump administration’s goal to relieve the regulatory hardships that health insurers endure, as well as to reduce the premium costs for health insurance enrollees.

The goal for 2020 is that the fees would be reduced from 3.5% to 3.0% for health plans from the federal exchange as well as 2.5% from 3.0% for health plans on state exchanges.

Read the original article from Modern Healthcare here.

By | 2019-01-18T10:01:56+00:00 January 18th, 2019|Articles, Industry Updates|0 Comments