CMS Administrator Seema Verma penned an op-ed in The Washington Times urging states to "chart a new path" when developing programs and approaches to health coverage.
Four things to know:
1. Ms. Verma wrote that "no matter what you think about the ACA, the facts show that individual health insurance markets across the country have been struggling." She noted increasing insurance premiums and lower enrollment in the ACA exchanges. Some health insurance experts said the decline in ACA enrollment could reflect the Trump administration's funding cuts to advertising and enrollment-assistance groups. Others pointed to the fact that Americans no longer face a penalty for forgoing health insurance.
2. While Ms. Verma acknowledged federal laws surrounding Medicaid and the ACA may not change soon, she wrote that CMS has focused more attention on helping states improve their individual health insurance markets independently. For example, on Oct. 22, 2018, CMS said it will change how the ACA's Section 1332 waivers work. The waivers allow states to bypass some of the ACA's rules as long as any coverage changes are at least as comprehensive and affordable to a comparable number of people.
3. Through the newly named State Relief and Empowerment Waivers, Ms. Verma said "perhaps the best potential to improve consumer control and generate health system reforms would permit states to develop a new account-based program to help subsidize healthcare expenses."
4. "Instead of the complicated way Obamacare currently subsidizes individual market premiums, states could provide a defined contribution to an account for people to use to pay premiums and, if funds remain in the account, any out-of-pocket health expenses," she continued. "By providing contributions to an account, this approach could substantially increase consumer engagement and control over their healthcare dollars."
For the full op-ed, click here.