SNL Financial: Obama administration clears state-level path to reforming ACA’s risk adjustment program

May 9, 2016
By Adam Cancryn
SNL Financial

The Obama administration could give states more power to manage the Affordable Care Act’s risk adjustment program, in a concession to critics who complained that the program unfairly penalized certain companies and threatened to destabilize the exchange system.

The new policy, which was issued late on May 6, encourages state insurance commissioners to seek “local approaches” to easing the impact of the risk adjustment process on small and high-growth health plans. That language appears to open the door to allowing states to artificially limit the amounts that companies might have to pay into the program each year.

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