In particular, CMS is looking at possibly cutting automatic re-enrollment for low-income consumers.
Modern Healthcare: CMS Proposes Rules To Rein In ACA Subsidies
The federal government on Friday proposed changes to standards governing ACA-compliant health plans sold on the exchanges in 2021, several of which aim to ensure the CMS doesn’t provide subsidies to ineligible people. The CMS asked for feedback on whether it should end automatic re-enrollment for low-income exchange enrollees who receive $0 premium plans with tax credits. The agency requested comment on whether it should discontinue or reduce those enrollees’ advanced premium tax credits for the next year unless they actively update their application during open enrollment. (Livingston, 1/31)
In other health insurance and cost news —
The Associated Press: Trump Administration Rejects California’s Health Care Tax
The Trump administration says it will not allow California to collect a key health care tax on managed care organizations, a decision that could cost the state nearly $2 billion a year for low-income benefits. The news does not immediately affect California’s budget because the state did not plan to receive that money this year or the budget year that begins July 1. But it could cost California $1.2 billion in the fiscal year that begins July 1, 2021, California Department of Finance spokesman H.D. Palmer said. That number increases to $1.9 billion after that. (Beam, 1/31)
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