ACA Risk Adjustment is out of Danger. For Now.

The video discusses the risk adjustment mechanism in the Affordable Care Act, which ensures insurers with healthier patients compensate those with sicker ones to prevent cherry-picking. A New Mexico judge's ruling questioned the budget neutrality of this program, halting $5.2 billion in transfers. The Trump administration faced criticism for perceived sabotage but later issued a rule to address the court's concerns, allowing the program to proceed. Experts find the new rule convincing, though legal challenges may persist.

What are the potential implications if risk adjustment is not budget neutral?

What does Nicholas Bagley think about the explanation provided by the Trump administration regarding risk adjustment?