South Dakota insurers may take hit after payment freeze
SIOUX FALLS, SD (AP) -
Some South Dakota insurers may lose millions as President Donald Trump's administration moves to freeze payments under an Affordable Care Act program that protects insurers with sicker patients.
The Argus Leader reports that experts argue that the decision likely won't topple the state's insurance market, but could drive up premiums next year.
The Centers for Medicare and Medicaid Services announced Saturday a suspension of payments part of the so-called "risk adjustment" program that shuffles money from insurers with healthier customers to companies with sicker enrollees.
It's the administration's latest action to disrupt the health care law that Trump has attempted to repeal.
Federal data shows the move could cost Sanford Health Plan more than $5 million, while other insurers could save.
Sanford President Kirk Zimmer says it creates uncertainty that could increase insurance rates.