CMS Releases Final Rules for 2020 Health Plans under Obamacare

After a lengthy commentary period that saw few changes from the proposed rule, the Centers for Medicare and Medicaid Serves (CMS) has released its “Notice of Benefit and Payment Parameters” for health insurance plans being sold on the Affordable Care Act (ACA or Obamacare) exchanges for 2020.

aca-unconstitutional-ruling-on-holdThe notice actually lowers user fees on the federal and state health insurance marketplaces, or exchanges, by a half a percentage point — from 3.5 to 3 percent on the federal exchange and from 3 to 2.5 percent on the state exchanges.

At the same time, it endorses what has come to be known as “silverlining” — the practice by insurance companies of raising rates and out-of-pocket limits on the Silver plans sold under Obamacare to cover the absence of cost-sharing reduction (CSR) payments, which were ended by the Trump administration in 2017.

The final rule also allows for the continuation of policy auto-renewal.

Participating insurers now have only until June 19 to submit their health plan options for 2020.

NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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