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'Risk adjustment' threatens Obamacare

'Risk adjustment' threatens Obamacare

The single biggest threat to the survival of the Affordable Care Act (ACA) is not the Republican-led legislative effort to repeal it. Nor is it inadequate enrollment. It is inaction by the administration's own agency that is tasked with implementing Obamacare: the Centers for Medicare and Medicaid Services (CMS), a division of the Department of Health and Human Services (HHS).

The specific issue that so seriously threatens the ACA is risk adjustment, one of the so-called 3R's of the ACA. Risk adjustment is intended to smooth out the unpredictability of the health insurance marketplace, which is the result of the vital ACA requirement that all Americans be offered affordable coverage...