The Trump Administration Freezing Payments Required by Affordable Care Act
The Trump Administration recently decided to freeze payments required by the Affordable Care Act. This decision is likely to upset the Healthcare Market in unknown ways, this is why as a business it is incredibly important to make sure that you have sorted out your aca reporting as soon as possible. Seth Denson recently appeared on KHOW Talk Radio to discuss what the effects of this decision might be.
The biggest challenge here is that when the Federal Government makes financial commitments based on how thing are structured and then rescinds that it causes the economic system to turn on its ear. This idea that they are going to withhold money is detriment, especially smaller insurance companies.
The Trump Administration said it would appeal the judges decision that Federal ACA payments were illegal, but that it would pause those payments throughout the appeal process.
You have multiple courts with conflicting opinions and so this will have to work it’s way up through the court system. But this allows the Trump Administration to play both sides and say, ‘They’re going to appeal the decision’ while at the same time pausing Federally mandated payments. Until there is a firm pathway to [ACA] replacement or even a reversal, you can’t just flip a switch and make things go back to the way things were.