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Affordable Care Act

Trump Administration To Resume 'Obamacare' Insurer Payments

A doctor in a hospital hallway holding a stethoscope

The Trump administration says it will restore Affordable Care Act payments to insurers that it had recently frozen, leading to concerns about higher premiums next year.

The Centers for Medicare and Medicaid Services made the announcement Tuesday evening in an email.

About $10 billion is at stake through a premium stabilization program. Insurers with healthier-than-average customers pay into the program, and the money goes to insurers with sicker patients. No taxpayer subsidies are involved.

The administration had faced widespread criticism for its original move, with insurers warning of premium increases and exits from the market. Republican lawmakers were concerned about political fallout affecting the midterm elections.

CMS Administrator Seema Verma reassured insurers their concerns had been heard, saying, "Alleviating concerns in the market helps to protect consumer choices."