Trump officials approve New Jersey plan to stabilize ObamaCare
A plan to help lower ObamaCare premiums in New Jersey was given the green light by the Trump administration on Thursday.
New Jersey’s waiver for a reinsurance program is expected to lower premiums by up to 15 percent in 2019, the state said. The program was approved by the Centers for Medicare and Medicaid Services (CMS) through a section of ObamaCare called an “innovation” waiver.
The program will set up a pot of money that will be funneled towards insurance companies to help pay for the sickest patients. It will be funded partly through the $90 million to $100 million in expected revenue from the state’s new individual mandate penalty.
Reinsurance has bipartisan support, and similar plans have been approved in other states like Wisconsin and Alaska.
CMS Administrator Seema Verma applauded the approval on Thursday, but blamed what she cast as a failing ObamaCare for the premium spikes.
“[Bravo] to New Jerseyans, who will see their premiums in the individual market ↓ by about 15% from the expected premiums because @NJGov took action to address the failures of Obamacare,” Verma wrote in a tweet.
Democrats argue that the Trump administration and congressional Republicans are sabotaging Obamacare, leading to higher premiums.
ObamaCare explicitly allows for states to design innovation waivers as a way to give states flexibility on the law.
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