Alaska to Receive $332 Million in Federal Funds to Lower Health Insurance PremiumsState approved for insurance waiver to lower premiums for individual health insurance market
July 11, 2017
“Health care costs are increasingly unaffordable for a growing number of Alaskans,” Governor Walker said. “This waiver provides relief from large premium hikes for 23,000 Alaskans who are currently insured through the individual market. I thank the Trump Administration, members of the legislature, and the congressional delegation for their efforts. I especially thank Division of Insurance Director Lori Wing-Heier for proposing this innovation for Alaska, which has also served as a model for other states.” The Alaska Reinsurance Program uses federal money to re-insure claims for Alaskans with high-cost medical conditions, which reduces premiums for all of the roughly 23,000 Alaskans in the individual market. This, in turn, reduces federal subsidies across the market. The federal innovation waiver passes the savings from reduced federal tax credits back to the state government. Essentially, federal funds offset the price of insuring those with high-cost medical conditions. Premiums in the individual market are expected to decrease by approximately 20 percent as a result of this program. With recent announcements of double-digit premium hikes and insurers exiting individual markets across the nation, many states have expressed interest in adopting Alaska’s model to stabilize their individual health insurance markets. As a result of the waiver approval, more consumers in Alaska may have coverage, consumers will see lower premiums, and the state will receive pass-through funding to help offset a substantial portion of state costs for the state-operated reinsurance program. Alaska predicts that an average of 1,460 additional individuals will have health insurance coverage due to the lower cost of healthcare through stabilization of the individual market. “Alaska has among the highest health care premiums in the nation, and I’m pleased that the federal government has worked with the state to pursue innovative solutions for stabilizing our market,” said Alaska Division of Insurance Director Lori Wing-Heier. U.S. Senator Dan Sullivan (R-AK) today commended the Trump Administration, including Health and Human Services Secretary Tom Price and Administrator of the Centers for Medicare and Medicaid Services Seema Verma, for working with the State of Alaska to grant a State Innovation Waiver under Section 1332 of the Affordable Care Act. The state applied for the waiver following legislation signed by Governor Bill Walker last year which appropriated $55 million to the Alaska Reinsurance Program in order to reduce spiraling health insurance costs. According to Sullivan, the waiver will provide Alaskans and the state temporary relief while Congress continues to debate a longer-term solution. The federal government will reimburse the state roughly $48 million next year. For the following four years, that number is expected to increase based on enrollment in the individual market. “I appreciate Secretary Price and Administrator Verma for working with the state – unlike the previous Administration – to address the high cost of health insurance in Alaska,” said Senator Sullivan. “I also want to applaud the Director of the Division of Insurance Lori Wing-Heier for all of her hard work as well as the Alaska Legislature for passing the reinsurance bill that paved the way for this waiver. “While the expected decrease in premiums for Alaskans following the waiver will be welcome news, we still have much work to do to provide affordable health care for all Alaskans. As I’ve told my Senate colleagues and the Trump Administration repeatedly, Alaskans are paying the highest costs for healthcare and health insurance in the country – costs that have increased 203 percent since 2013. Providing maximum flexibility to the states, instead of the one-size-fits-all model of the Affordable Care Act, must be a critical element of any healthcare bill we pass in Congress.”
On the Web:
Editing by Mary Kauffman, SitNews
Source of News:
Representations of fact and opinions in comments posted are solely those of the individual posters and do not represent the opinions of Sitnews.
|
|||
