A state-based reinsurance program could save Montanans 10 to 20 percent on individual health insurance premiums.
Bozeman, Mont., Sep 19, 2018 – A new analysis released today looks at how creating a state claims-based reinsurance program could save Montanans 10 to 20 percent on individual health insurance premiums. The analysis was commissioned by the Montana Healthcare Foundation and conducted by Wakely Consulting Group, LLC.
“This analysis is a great example of how Montana-based innovations can strengthen our health care system and improve Montanans’ health,” said MHCF CEO Dr. Aaron Wernham.
For low and middle-income Montanans that do not receive employer coverage and do not qualify for Medicaid, the individual market is a critical resource for health insurance coverage. In the last two years, Montana’s individual health insurance market has experienced double-digit premium increases and enrollment has decreased from approximately 80,000 Montanans in 2016 to about 62,000 according to an enrollment study conducted in April of 2018.
State-based reinsurance programs, created by waivers under section 1332 of the Affordable Care Act, are designed to stabilize the individual market and control insurance premiums. The analysis released today examines how a potential reinsurance program would impact premiums in 2020, what the potential pass-through might be if the state pursues a reinsurance-based 1332 waiver, and potential reinsurance payment parameters for select funding scenarios.