Obamacare David Axelrod cried passed nr_00000000.jpg
Obamacare David Axelrod cried passed nr_00000000.jpg
Now playing
01:19
Axelrod: I cried when they passed Obamacare
Now playing
02:15
Why is health care in the US so expensive?
WASHINGTON, DC - OCTOBER 04:  Senate Budget Committee ranking member Sen. Bernie Sanders (I-VT) attends a news conference critical of the Republican tax and budget plan at the U.S. Capitol October 4, 2017 in Washington, DC.  (Chip Somodevilla/Getty Images)
PHOTO: Chip Somodevilla/Getty Images
WASHINGTON, DC - OCTOBER 04: Senate Budget Committee ranking member Sen. Bernie Sanders (I-VT) attends a news conference critical of the Republican tax and budget plan at the U.S. Capitol October 4, 2017 in Washington, DC. (Chip Somodevilla/Getty Images)
Now playing
03:14
Fact check: The true cost of 'Medicare for all'
title: Chairman Orrin Hatch: Assessing the impact of tax reform | LIVE STREAM  duration: 01:25:52  sub-clip duration: 4:00  site: Youtube  author: null  published: Thu Mar 01 2018 10:30:11 GMT-0500 (Eastern Standard Time)  intervention: yes  description: In December, Congress passed the Tax Cuts and Jobs Act, the most sweeping overhaul of America
PHOTO: american enterprise institute
title: Chairman Orrin Hatch: Assessing the impact of tax reform | LIVE STREAM duration: 01:25:52 sub-clip duration: 4:00 site: Youtube author: null published: Thu Mar 01 2018 10:30:11 GMT-0500 (Eastern Standard Time) intervention: yes description: In December, Congress passed the Tax Cuts and Jobs Act, the most sweeping overhaul of America's tax code in more than 30 years. How will the reduction in the corporate income tax rate and other features of the new tax law affect the US economy? Please join AEI for remarks by Senate Finance Committee Chairman Orrin Hatch (R-UT) on the impact of the Tax Cuts and Jobs Act. After Chairman Hatch's remarks, an expert panel will discuss the legislation further.Watch other videos about "Topic" Subscribe
Now playing
00:58
Sen. Hatch calls Obamacare supporters stupid
WASHINGTON, DC - OCTOBER 12:  U.S. President Donald Trump lisens during a nomination announcement at the East Room of the White House October 12, 2017 in Washington, DC. President Trump has nominated Nielsen to be the next homeland security secretary, the position that has left vacant by Chief of Staff John Kelly.  (Photo by Alex Wong/Getty Images)
PHOTO: Alex Wong/Getty Images North America/Getty Images
WASHINGTON, DC - OCTOBER 12: U.S. President Donald Trump lisens during a nomination announcement at the East Room of the White House October 12, 2017 in Washington, DC. President Trump has nominated Nielsen to be the next homeland security secretary, the position that has left vacant by Chief of Staff John Kelly. (Photo by Alex Wong/Getty Images)
Now playing
01:49
Trump ends insurance subsidies for poor people
Now playing
00:53
Rep. Dent: Republicans own Obamacare now
Mick Mulvaney Obamacare subsidies CSR payments tsr_00000000.jpg
Mick Mulvaney Obamacare subsidies CSR payments tsr_00000000.jpg
Now playing
02:46
Trump official defends ending Obamacare subsidies
rick and bubba show trump
PHOTO: Rick & Bubba Show
rick and bubba show trump
Now playing
01:43
Trump: McCain 'no' vote is a slap in the face
9/25/17, CNN, Washington, D.C. 

Sens. Bill Cassidy (R-La.), Lindsey Graham (R-S.C.), Amy Klobuchar (D-Minn.), and Bernie Sanders (I-Vt.) speak at a CNN townhall debate on healthcare at the CNN headquarters in Washington, D.C. on Sept. 25, 2017. 

Gabriella Demczuk / CNN
PHOTO: Gabriella Demczuk for CNN
9/25/17, CNN, Washington, D.C. Sens. Bill Cassidy (R-La.), Lindsey Graham (R-S.C.), Amy Klobuchar (D-Minn.), and Bernie Sanders (I-Vt.) speak at a CNN townhall debate on healthcare at the CNN headquarters in Washington, D.C. on Sept. 25, 2017. Gabriella Demczuk / CNN
Now playing
02:26
Watch highlights from CNN's health care debate
Now playing
00:51
Sanders: Can't understand attacking McCain
Now playing
01:18
Sen. Graham: I will work with anyone
Now playing
01:50
Cassidy takes on the 'Jimmy Kimmel test'
Now playing
01:06
Klobuchar says Trump should work with Dems
Now playing
01:25
Graham on health bill: It's OK to fall short
WASHINGTON, DC - JULY 26:  U.S. Sen. Susan Collins (R-ME) heads for the Senate Floor for a vote at the U.S. Capitol July 26, 2017 in Washington, DC. GOP efforts to pass legislation to repeal and replace the Affordable Care Act, also known as Obamacare, were dealt setbacks when a mix of conservative and moderate Republican senators joined Democrats to oppose procedural measures on the bill.  (Photo by Chip Somodevilla/Getty Images)
PHOTO: Chip Somodevilla/Getty Images
WASHINGTON, DC - JULY 26: U.S. Sen. Susan Collins (R-ME) heads for the Senate Floor for a vote at the U.S. Capitol July 26, 2017 in Washington, DC. GOP efforts to pass legislation to repeal and replace the Affordable Care Act, also known as Obamacare, were dealt setbacks when a mix of conservative and moderate Republican senators joined Democrats to oppose procedural measures on the bill. (Photo by Chip Somodevilla/Getty Images)
Now playing
01:23
Sen. Collins a 'no' on Graham-Cassidy bill
Senator Lindsey Graham (C), R-SC, stands with Senator Bill Cassidy, R-LA, Senator Dean Heller (L), and Senator Ron Johnson, R-WI, as well as former Senator Rick Santorum (R), to announce their legislation to repeal and replace Obamacare through block grants on Capitol Hill in Washington, DC, on September 13, 2017.   / AFP PHOTO / JIM WATSON        (Photo credit should read JIM WATSON/AFP/Getty Images)
PHOTO: JIM WATSON/AFP/AFP/Getty Images
Senator Lindsey Graham (C), R-SC, stands with Senator Bill Cassidy, R-LA, Senator Dean Heller (L), and Senator Ron Johnson, R-WI, as well as former Senator Rick Santorum (R), to announce their legislation to repeal and replace Obamacare through block grants on Capitol Hill in Washington, DC, on September 13, 2017. / AFP PHOTO / JIM WATSON (Photo credit should read JIM WATSON/AFP/Getty Images)
Now playing
01:12
CBO: Millions uninsured under Graham-Cassidy
(CNN) —  

The Trump administration announced Saturday that it will temporarily halt billions of dollars in payments under the Affordable Care Act’s risk adjustment program, a move that could shake up insurance markets.

The Centers for Medicare and Medicaid Services (CMS), the agency that oversees the program, cited a recent federal court decision that found the formula for calculating the risk adjustment payments to be flawed. In a March 2018 ruling out of New Mexico, US District Court Judge Thomas Browning that the methodology used by the federal government was “arbitrary and capricious” and remanded it back to the agency, according to Lexis Legal News.

“We were disappointed by the court’s recent ruling,”” CMS Administrator Seema Verma said in a statement. “As a result of this litigation, billions of dollars in risk adjustment payments and collections are now on hold. CMS has asked the court to reconsider its ruling, and hopes for a prompt resolution that allows CMS to prevent more adverse impacts on Americans who receive their insurance in the individual and small group markets.”

The Wall Street Journal was the first to report the expected suspension of the payments. The payments insurers expected this fall, based on their 2017 business, amounted to $10.4 billion.

America’s Health Insurance Plans (AHIP), the trade organization representing health insurers, decried the suspension of the payments.

“We are very discouraged by the new market disruption brought about by the decision to freeze risk adjustment payments,” the group said in a statement Saturday. “This decision will have serious consequences for millions of consumers who get their coverage through small businesses or buy coverage on their own. It will create more market uncertainty and increase premiums for many health plans – putting a heavier burden on small businesses and consumers, and reducing coverage options. And costs for taxpayers will rise as the federal government spends more on premium subsidies.”

The Blue Cross Blue Shield Association, a federation of 36 Blue Cross and Blue Shield companies nationwide, also expressed disapproval at the move, saying it could create “turmoil” in the market.

“We are extremely disappointed that the administration has frozen payment transfers under the Affordable Care Act’s (ACA) risk adjustment program, which is designed to keep costs down for consumers while meeting the medical needs of those requiring significant care,” President and CEO Scott Serota said in a statement. “This action will significantly increase 2019 premiums for millions of individuals and small business owners and could result in far fewer health plan choices. It will undermine Americans’ access to affordable coverage, particularly those who need medical care the most.”

Risk adjustment is a key aspect of market stabilization under the ACA, also known as Obamacare. The program transfers funding from plans with lower-risk enrollees to higher-risk ones in an effort to even out the market and “encourage insurers to compete based on the value and efficiency of their plans rather than by attracting healthier enrollees,” according to the Kaiser Family Foundation.

The suspension of the payments comes amid other efforts by the Trump administration to try to chip away at the landmark health care law. In June, the administration said it wouldn’t defend central portions of Obamacare in federal court, claiming that key provisions should be invalidated and that the individual mandate is unconstitutional. In October 2017, the White House announced it would end Obamacare cost-sharing payments that helped lower-income enrollees pay for health care.

It also comes as insurers appeared to be warming back up to the ACA. Insurers were entering or returning to at least a dozen states for 2019 enrollment, while others were expanding their presence in the states in which they operate.

Still, insurers are grappling with changes that the Trump administration and Congress have made to Obamacare for 2019. These include eliminating the individual mandate penalty and broadening the availability of two alternatives to Affordable Care Act policies.

These moves are prompting some insurers to request premium hikes for 2019 in the double digits.

CNN’s Ariane de Vogue and Kevin Liptak contributed to this report.