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Feds wants insurers to remain in ACA market as they figure out replacement plan

House GOP and Department of Justice file joint motion to continue cost-sharing reduction payments to insurers.
By Susan Morse , Executive Editor

On Tuesday, House Republicans and the Department of Justice filed a joint motion to a federal appeals court requesting the continuance of a court order that temporarily holds off on blocking cost-sharing reduction payments to insurers.

Republicans are expected to take up an ACA replacement plan after they return from break this week.

[Also: Possible GOP replacement for Obamacare includes no individual mandate, shifts Medicaid to states]

The move, which asks for a delay until May 22, with status reports due every three months after that, was done to stabilize the ACA market until the GOP comes up with a legislative resolution that would end the need for a court decision, according to the motion.

If the court approves the request, insurers will continue to receive the funds under the ACA for covering consumers who are unable afford their deductibles, copayments or coinsurance.

Republican leadership had sued over the cost-sharing reduction program saying Congress never appropriated the money. A federal judge agreed in a ruling handed up last year, and the Obama administration had appealed.

On Dec. 5, after the election of President Donald Trump, the appeals court gave the GOP leadership until Feb. 21 to come back with a plan.

Also this week, the Centers for Medicare and Medicaid Services proposed extending the deadline for insurers to file their rates for the federally-facilitated marketplace for plans starting Jan. 1, 2018.

State marketplaces may do the same, but are not bound by the deadline, CMS said.

CMS proposes to extend the rate filing period to June 21, with comment due by March  7.

[Also: Insurers seek market stabilization prior to April rate-setting deadline]

Finally, last week, the Trump administration released proposed new rules in the ACA market that are seen as favorable to insurers.

But it may be too late for large insurers such as UnitedHealth and Aetna, which have already gotten out of the ACA market or have cut back on participating citing financial losses.

[Also: CMS proposes new rules to encourage insurers to stay in ACA marketplace]

Insurers also blame the lack of the federal financial backing promised in the ACA for taking on the risk of insuring consumers who are sicker than projected. Earlier this month, Humana announced it would be leaving the ACA market completely beginning in 2018.

Twitter: @SusanJMorse