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Insurer group urges CMS Administrator Seema Verma to reconsider pass-through funding for non-ACA plans

December 26, 2018 / Susan Morse

America's Health Insurance Plans is urging Centers for Medicare and Medicaid Services Administrator Seema Verma to prevent subsidies from being used to purchase plans that are not compliant with the Affordable Care Act. In a December 20 letter to Verma, AHIP said CMS's October proposal to offer new flexibility through ACA waivers would destabilize the market. CMS is proposing for states to apply for waivers to let them to use pass-through funding for subsidies that until now, have helped individuals purchase ACA plans. The funding would be able to be applied for subsidies for other types of insurance, such as short-term, limited duration plans. The agency is preparing to release a series of waiver concepts that have more specifics. The new policy is currently in effect, but is expected to impact states in 2019 for the 2020 plan year.