New Obama proposals aim to ease ACA's financial burden on health insurance companies

The Obama administration released a 300 page policy sheet late Monday night detailing reforms to ease the Affordable Care Act's financial burden on health insurers.

The administration’s proposal includes measures that address insurers’ concerns on the premium stabilization programs. It would also kill the existing five-year firewall that bans insurers from competing on marketplace exchanges once they’ve left.

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Another modification would provide a measure of protection for insurers against high-cost enrollees. When a member's claims exceed $2 million annually, the cost would be shared among multiple insurers under the proposal. 

The Centers for Medicare & Medicaid Services would also add prescription drug data to risk adjustment calculations. If approved, the proposals would take effect in 2018.

“As the marketplace continues to grow and mature, one of our most important priorities is to study data, listen to a range of market participants, test out different approaches, and adapt to what we see and hear,” Obamacare CEO Kevin Counihan said in a blog post

"We have a number of tools to make adjustments like the ones we are proposing today, and are confident in our ability to make the Marketplace an even more attractive market for consumers and health plans alike."