The Trump administration said on July 7 that it would temporarily suspend some payments to health insurers under the Affordable Care Act’s (ACA) risk adjustment program, in light of a ruling earlier this year by a federal district court in New Mexico.
On Feb. 28, 2018, a federal judge in New Mexico decided that the use of the statewide average premium formula to calculate risk adjustment payments was flawed. The ruling barred Centers for Medicare and Medicaid Services (CMS) from making further collections or payments under the program, including amounts for the 2017 benefit year, until the litigation is resolved.