CMS restarts risk payments, will pay out $10 billion to insurers

The CMS issued a final rule Tuesday to resume paying $10.4 billion dollars in risk-adjustment payments to insurance companies with plans on the individual market.

“This rule will restore operation of the risk adjustment program and mitigate some of the uncertainty caused by the New Mexico litigation,” CMS Administrator Seema Verma said in a statement. “Issuers that had expressed concerns about having to withdraw from markets or becoming insolvent should be assured by our actions today. Alleviating concerns in the market helps to protect consumer choices.”

The rule was expected after the White House’s Office of Management and Budget posted on its site it had received a rule on the risk payments last week.

HHS skipped the proposed...