ACA Risk Adjustment is out of Danger. For Now.

The video discusses the risk adjustment mechanism in the Affordable Care Act, which ensures insurers with healthier patients compensate those with sicker ones to prevent cherry-picking. A New Mexico judge's ruling questioned the budget neutrality of this program, halting $5.2 billion in transfers. The Trump administration faced criticism for perceived sabotage but later issued a rule to address the court's concerns, allowing the program to proceed. Experts find the new rule convincing, though legal challenges may persist.

What is the primary purpose of risk adjustment in the Affordable Care Act?

• To prevent insurers from selecting only healthy patients

• To increase profits for insurers

• To provide free healthcare to all citizens

• To reduce healthcare costs for the government

What was the main reason the New Mexico judge vacated the risk adjustment rules?

• The rules were outdated

• The rules were too complex

• The agency failed to explain the need for budget neutrality

• The rules favored certain insurers

What was the initial reaction to the freezing of the risk adjustment program?

• It was seen as a necessary step

• It was viewed as an act of sabotage

• It was ignored by most stakeholders

• It was praised for its transparency

What action did the Trump administration eventually take to address the court's concerns?

• They ignored the court's decision

• They issued a new rule explaining budget neutrality

• They abolished the risk adjustment program

• They increased funding for the program

What potential objection could be raised against the new rule issued by the Trump administration?

• It was too lenient on insurers

• It did not go through a notice and comment period

• It increased costs for patients

• It favored certain states over others