Montana receives waiver to implement reinsurance program

The departments of Health and Human Services and the Treasury Friday approved a Section 1332 waiver for Montana to implement a five-year reinsurance program for its individual health insurance market beginning in 2020. Gov. Steve Bullock said the program “will lower insurance premiums, make it possible for more Montanans to enroll by driving down costs, cultivate greater certainty in the market and protect consumer’s choices.” The departments have approved similar waivers for other states. The ACA’s transitional reinsurance program to protect health plans in the individual market from unexpectedly high-cost enrollees under the law’s new insurance rules expired in 2016. AHA has encouraged the administration to approve state efforts to stabilize the health insurance marketplaces, and has urged Congress to create a federal reinsurance program and provide multi-year funding for cost-sharing reduction benefits to reduce premiums and stabilize the individual market.