WASHINGTON: The Trump administration said Saturday it’s freezing payments under an “Obamacare” program that protects insurers with sicker patients from financial losses, a move expected to add to premium increases next year.
At stake are billions in payments to insurers with sicker customers.
In a weekend announcement, the Centers for Medicare and Medicaid Services said the administration is acting because of conflicting court ruling in lawsuits filed by some smaller insurers who question whether they are being fairly treated under the program.
The so-called “risk adjustment” program takes payments from insurers with healthier customers and redistributes that money to companies with sicker enrollees. Payments for 2017 are $10.4 billion. No taxpayer subsidies are involved.
The idea behind the program is to remove the financial incentive for insurers to “cherry pick” healthier customers. The government uses a similar approach with Medicare private insurance plans and the Medicare prescription drug benefit.
Major insurer groups said Saturday the administration’s action interferes with a program that’s working well.
The Blue Cross Blue Shield Association, whose members are a mainstay of Affordable Care Act coverage said it was “extremely disappointed” with the administration’s action.
The Trump administration’s move “will significantly increase 2019 premiums for millions of individuals and small business owners and could result in far fewer health plan choices,” association president Scott Serota said in a statement. “It will undermine Americans’ access to affordable coverage, particularly those who need medical care the most.”
Serota noted that the payments are required by law, and said he believes the administration has the legal authority to continue making them despite the court cases. He warned of “turmoil” as insurers finalize their rates for 2019.
America’s Health Insurance Plans, the main health insurance industry trade group, said in a statement that it is “very discouraged” by the Trump administration’s decision to freeze payments.
“Costs for taxpayers will rise as the federal government spends more on premium subsidies,” the group said.
Rumors that the Trump administration would freeze payments were circulating late last week. But the Saturday announcement via email was unusual for such a major step.
The administration argued in its announcement that its hands were tied by conflicting court rulings in New Mexico and Massachusetts.
Medicare and Medicaid Administrator Seema Verma said the Trump administration was disappointed by a New Mexico court ruling that questioned the workings of the risk program for insurers.
The administration “has asked the court to reconsider its ruling, and hopes for a prompt resolution that allows (the government) to prevent more adverse impacts on Americans who receive their insurance in the individual and small group markets,” she said.
More than 10 million people currently buy individual health insurance plans through HealthCare.gov and state insurance marketplaces. The vast majority of those customers receive taxpayer subsidies under the Obama-era health law and would be shielded from premium increases next year.
The brunt of higher prices would fall on solid middle-class consumers who are not eligible for the income-based subsidies. Many of those are self-employed people and small business owners, generally seen as a Republican constituency.
The latest “Obamacare” flare-up does not affect most people with employer coverage.
Trump administration takes another swipe at ‘Obamacare’
Trump administration takes another swipe at ‘Obamacare’
- The program takes payments from insurers with healthier customers and redistributes the money to companies with sicker enrollees
- The idea is to remove the financial incentive for insurers to "cherry-pick" healthier customers
North Korean foreign minister arrives in Moscow for talks
- The visit comes after Pyongyang tested a new intercontinental ballistic missile this week
- Washington says there are 10,000 North Korean troops in Russia
MOSCOW: North Korean Foreign Minister Choe Son Hui has arrived in Moscow and will hold strategic consultations with her Russian counterpart Sergei Lavrov on Friday, the Russian Foreign Ministry said.
Maria Zakharova, a spokeswoman for the ministry, in a post on her official Telegram channel, published photographs of Lavrov meeting Choe at a Moscow train station.
“Today, talks between the heads of Russia and the DPRK (Democratic People’s Republic of Korea) will be held in Moscow. Sergei Lavrov greeted his counterpart with a bouquet of flowers,” said Zakharova.
“The meeting began at the Yaroslavsky railway station (in Moscow), where a memorial plaque was unveiled to mark the occasion of Kim Il Sung’s 1949 visit to the USSR,” she said, referring to the founder of the DPRK.
The visit, Choe’s second in six weeks, comes after Pyongyang tested a new intercontinental ballistic missile this week and as Washington says there are 10,000 North Korean troops in Russia, including as many as 8,000 deployed in Russia’s Kursk region where Ukrainian troops have dug in.
US Secretary of State Antony Blinken said on Thursday that the United States expected the North Korean troops in Kursk region to enter the fight against Ukraine in the coming days.
Moscow has neither denied nor directly confirmed the presence of North Korean troops on its soil. President Vladimir Putin has said it is for Russia to decide how to implement a treaty he signed with North Korean leader Kim Jong Un in June that includes a mutual defense clause.
Shootout in western France wounds five: minister
- 15-year-old boy is between life and death after the gunbattle erupted in front of a restaurant overnight
Paris: A drug trafficking-related shooting has left a teenager and four others seriously wounded in the western French city of Poitiers, Interior Minister Bruno Retailleau said Friday.
The 15-year-old boy is between life and death after the gunbattle erupted in front of a restaurant overnight, Retailleau told BFMTV/RMC radio.
Drone crashes on oil depot in Russia’s Stavropol region
- There were no casualties in the incident at the Svetlograd oil depot, Vladimirov said on Telegram
MOSCOW: A drone fell on an oil depot in Russia’s southern Stavropol region, local governor Vladimir Vladimirov said on Friday.
It was the second suspected Ukrainian attack in consecutive days on Russian fuel and energy targets, following a lull of about seven weeks since a fuel facility in Tula was attacked on Sept. 10.
There were no casualties in the incident at the Svetlograd oil depot, Vladimirov said on Telegram.
Baza Telegram channel, which is close to Russia’s security services, posted a CCTV video purportedly showing the attack on the oil depot. The video showed that at least one of several fuel tanks was swiftly engulfed by a fireball.
On Thursday, several fuel and energy facilities were targeted in a Ukrainian drone attack on the central Russian region of Bashkortostan, home to Bashneft, a major oil company controlled by Russia’s leading oil producer, Rosneft .
Bashneft operates several refineries in the region, playing a significant role in Russia’s energy infrastructure.
The attacks come days after the Financial Times reported early-stage talks between Ukraine and Russia about potentially halting airstrikes on each other’s energy facilities. The Kremlin dismissed the report.
Russia has called such attacks terrorism, while Ukraine, which stepped up the drone strikes on Russian energy facilities since the start of the year, has said it is striking back in retaliation for attacks on its energy infrastructure.
Andrei Kartapolov, chairman of Russia’s lower house of parliament’s defense committee, said in comments to Life media channel earlier this week, that there were no talks on halting the attacks.
“We are not going to spare anyone,” he said.
European Commission President Ursula von der Leyen said in September that Russia had knocked out the gigawatt equivalent of over half of Ukraine’s energy infrastructure. The European Union aims to restore 2.5 GW of capacity, about 15 percent of the country’s needs, she said, referring to proposed EU-funded repairs.
Eight dead as huge fire engulfs cooking oil factory near Jakarta
- The factory is operated by PT Primus Sanus Cooking Oil Industrial (Priscolin)
JAKARTA: Eight people died in a large fire at a cooking oil factory near the Indonesian capital Jakarta, local fire authorities said on Friday.
Around 20 firefighting trucks are at the site and have contained the blaze in most areas of the factory, authorities said.
Footage from Metro TV showed flames and billowing black smoke coming out of a building in the center of an industrial complex in Bekasi, a city on Jakarta’s eastern edge. The report said roads had been closed around the factory.
All of the bodies had been evacuated from the site, Suhartono, head of Bekasi’s fire department SAID, adding that three other people were injured.
But the number of casualties could still rise, he said.
Local authorities are investigating the cause of the fire.
The factory is operated by PT Primus Sanus Cooking Oil Industrial (Priscolin), said Suhartono.
Schoolgirls, policeman among five killed in roadside blast in Pakistan’s Balochistan
QUETTA: At least five people, including three schoolgirls and a policeman, were killed in a roadside blast in Pakistan’s southwestern Balochistan province on Friday morning, police said, in the latest incident of violence to hit the restive region.
The blast appeared to target a police van passing by a girls school in the Mastung district of the province, according to police and local administration officials.
Fateh Baloch, in-charge of the Mastung police station, said the police mobile van came under attack when it was on a routine patrol on Friday morning.
“Five people, including a police constable and three minor schoolgirls, were killed and 13 others injured in the blast,” Baloch told Arab News.
No group immediately claimed responsibility for the blast.
“We have cordoned-off the area and are shifting the injured to the hospital,” Baz Muhammad Marri, the Mastung deputy commissioner, told Arab News.
Balochistan, which borders Iran and Afghanistan and is home to major China-led projects such as a strategic port and a gold and copper mine, has been the site of a decades-long separatist insurgency by ethnic Baloch militants. The province has lately seen an increase in attacks by separatist militants.
On Tuesday, five people were killed in an attack by armed men on the construction site of a small dam in Balochistan’s Panjgur district. The outlawed Baloch Liberation Army (BLA), the most prominent of several separatist groups, claimed responsibility for the attack along with killing of two other persons in Kech and Quetta districts.
This month, 21 miners working at privately run coal mines were killed in an attack by unidentified gunmen.
The separatists accuse the central government of exploiting Balochistan’s mineral and gas resources. The Pakistani state denies the allegation and says it is working to uplift the region through development initiatives.
Besides Baloch separatists, the restive region also has a presence of religiously motivated militant groups, who frequently target police and security forces.
Islamabad says militants mainly associated with the Pakistani Taliban frequently launch attacks from Afghanistan and has even blamed Kabul’s Afghan Taliban rulers for facilitating anti-Pakistan groups. Kabul denies the allegation.