Governor Tom Wolf today announced that the Pennsylvania Insurance Department has taken a step in advancing the goal of lowering the cost of health insurance premiums by submitting the Commonwealth's 1332 State Innovation Waiver application to the Center for Medicare and Medicaid Services (CMS).
The creation of a state reinsurance program through the Affordable Care Act's (ACA) Section 1332 waiver process will further strengthen Pennsylvania's individual health insurance marketplace by lowering gross premiums and increasing access to affordable marketplace coverage.
"My administration is thrilled to announce that Pennsylvania has submitted the waiver application for our reinsurance program, because it will directly scale down health care costs for hundreds of thousands of Pennsylvanians and their families," said Gov. Wolf. "Making health care more affordable in our state has been one of my priorities since I took office, and this waiver is an important step toward achieving that goal."
A reinsurance program pays a portion of high cost claims in the individual market, such as those incurred after major accidents or costs associated with serious health conditions. By reimbursing carriers for a portion of their higher-cost claims and spreading that risk across the broader marketplace, a reinsurance program will lower the premiums for individual health insurance plans from where they would otherwise be without reinsurance.
More on The PennZone
"The 1332 waiver, if approved, will help provide Pennsylvanians with tempered premiums and will increase affordability of health insurance in Pennsylvania's individual Affordable Care Act market," said Insurance Commissioner Jessica K. Altman. "Pennsylvania's individual market for health insurance is stable and has recently welcomed new insurers to the market and service area expansions of existing insurers. But a stable market does not necessarily mean an affordable market, and Pennsylvania has seen individual market rates rise in recent years. Pennsylvanians who are not eligible for financial assistance made available by the ACA are finding the full cost of premiums to be high and, for some, unaffordable. This waiver is designed to address that issue."
Pennsylvania's waiver request under Section 1332 is for a period of up to five years beginning in the 2021 plan year. The waiver will not affect benefits afforded to Pennsylvanians under the ACA, including coverage of required essential health benefits in individual and small group plans, and the prohibition of pre-existing condition exclusions in major medical plans.
The reinsurance program will be funded through a combination of federal "pass-through" funds and revenue provided by the commonwealth's new Pennsylvania Health Insurance Exchange Authority. The pass-through funds represent the reduction in federal expenditures, via premium tax credits, resulting from lower premiums due to the predictability and financial assistance provided by the reinsurance program.
More on The PennZone
Gov. Wolf signed historic legislation creating the state-based health insurance exchange in July. Recent technological advances allow states to operate their own exchanges more affordably and Pennsylvania is on track to have its exchange up and running in 2021.
SHARE Email Facebook Twitter
The creation of a state reinsurance program through the Affordable Care Act's (ACA) Section 1332 waiver process will further strengthen Pennsylvania's individual health insurance marketplace by lowering gross premiums and increasing access to affordable marketplace coverage.
"My administration is thrilled to announce that Pennsylvania has submitted the waiver application for our reinsurance program, because it will directly scale down health care costs for hundreds of thousands of Pennsylvanians and their families," said Gov. Wolf. "Making health care more affordable in our state has been one of my priorities since I took office, and this waiver is an important step toward achieving that goal."
A reinsurance program pays a portion of high cost claims in the individual market, such as those incurred after major accidents or costs associated with serious health conditions. By reimbursing carriers for a portion of their higher-cost claims and spreading that risk across the broader marketplace, a reinsurance program will lower the premiums for individual health insurance plans from where they would otherwise be without reinsurance.
More on The PennZone
- Pennsylvania: Gov. Wolf Calls for Universal Masking
- Screening Eagle raises CHF 55 million to protect the built world
- Koppers Joins Urban League in 'All One Pittsburgh' COVID-19 Campaign
- Florida Governor Issues Stay-at-Home Order All Legal Proceedings Must Go Online
- 230V in the vehicle made easy and powerful with an all-in-one inverter system
"The 1332 waiver, if approved, will help provide Pennsylvanians with tempered premiums and will increase affordability of health insurance in Pennsylvania's individual Affordable Care Act market," said Insurance Commissioner Jessica K. Altman. "Pennsylvania's individual market for health insurance is stable and has recently welcomed new insurers to the market and service area expansions of existing insurers. But a stable market does not necessarily mean an affordable market, and Pennsylvania has seen individual market rates rise in recent years. Pennsylvanians who are not eligible for financial assistance made available by the ACA are finding the full cost of premiums to be high and, for some, unaffordable. This waiver is designed to address that issue."
Pennsylvania's waiver request under Section 1332 is for a period of up to five years beginning in the 2021 plan year. The waiver will not affect benefits afforded to Pennsylvanians under the ACA, including coverage of required essential health benefits in individual and small group plans, and the prohibition of pre-existing condition exclusions in major medical plans.
The reinsurance program will be funded through a combination of federal "pass-through" funds and revenue provided by the commonwealth's new Pennsylvania Health Insurance Exchange Authority. The pass-through funds represent the reduction in federal expenditures, via premium tax credits, resulting from lower premiums due to the predictability and financial assistance provided by the reinsurance program.
More on The PennZone
- Mahmood Khan Cracks ITUNES Australia Top Ten Charts
- A Brutally Forthright Exposure of World Apathy Towards Corruption and Endless Conflicts
- Claxy launches New Collection of Wall Lamps with Many Styles and Designs
- Eat Locally - Businesses Supporting Local Restaurants
- Slim LED Light Box in 10mm,16mm and 20mm with 5 Years Warranty and Custom Sizes
Gov. Wolf signed historic legislation creating the state-based health insurance exchange in July. Recent technological advances allow states to operate their own exchanges more affordably and Pennsylvania is on track to have its exchange up and running in 2021.
SHARE Email Facebook Twitter
0 Comments
Latest on The PennZone
- Easton Dentist Remains Open During COVID-19 to Offer Emergency Dental Services
- Air King Earns 2020 ENERGY STAR® Partner of the Year - Sustained Excellence Award
- IAOP Announces New Initiative with Its Impact Sourcing Champions Index
- UGE Signs Three Agreements, Including Largest US Project in Company's History
- AFOP Announces its 2020 Farmworker Children Essay and Art Contest
- Care Packages to Frontline Workers Delivered by Erasable Inc. of Tampa with Partners ZO Skin Health and HydraFacial
- Pennsylvania: Gobernador Wolf: Solicitud de declaración de desastre mayor aprobada
- Exquisite home for sale in an equestrian community!
- Pennsylvania: Gov. Wolf, Sec. of Health Extend Stay-at-Home Orders to Seven Additional Counties, 33 Counties Now Ordered to Stay Home
- Pennsylvania: Governor Wolf: Request for Major Disaster Declaration Approved
- Affordable Dental Solutions in Reading Remains Open During COVID-19 for Emergency Care
- The Next Tech Billionaire Andrew Sobko Announced New Artificial Intelligence for Transportation
- Tip: COVID-19 hand dermatitis prevention
- edjuster Ensures Continuity of Services Across North America During COVID-19 Impact
- Helping to Build Ventilators in the Coronavirus Pandemic
- New Book Announcement: Executive Engagement Strategies—How to Have Conversations and Develop Relationships that Build B2B Business
- Harrisburg Orthodontist Offering Braces for Only $3,995
- Selectech Launches Healthcare Division
- STG Logistics handles first FEMA charter of medical supplies
- COVID-19 UPDATE: Coronavirus Positive Patients' can use Sargas' Remote Monitoring platform to free up hospital beds and Medical Staff