Trump administration slashes more ObamaCare funds

The Trump administration is slashing funds to nonprofit organizations that help people obtain insurance on the Affordable Care Act exchanges, just days after it suspended a program intended to stabilize the insurance market by helping offset costs associated with riskier patients.

On Tuesday, the Centers for Medicare and Medicaid Services (CMS) announced it will reduce funding to so-called navigators, which are trained individuals or organizations that help consumers understand their options on the marketplace, to $10 billion from $36 billion in 2017. In 2016, funding for navigator groups was $63 million, so the most recent funding cut represents an 80% reduction from two years ago.

Despite decreased funding levels, navigators will now be tasked with helping consumers sign up for short-term “association health plans” that are not required to comply with all of the Affordable Care Act regulations. Association health plans were expanded earlier this year by the administration as a lower cost offering for Americans.

The administration said navigators were not enrolling enough people to receive higher funding amounts.

Critics said the move would mean less assistance, particularly for underserved, harder to reach American communities.

Over the weekend, the administration said it would freeze risk adjustment payments to insurers that cover a large amount of unhealthy consumers – payments intended to stabilize the marketplace by offsetting higher costs associated with riskier patients.