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Bill to as stability to the individual market and reduce premium costs proposed by Kreidler

Mike Kreidler, Olympia Wash. – Insurance Commissioner is to propose legislation which will help provide some stability and confidence which over 300k people will be able to maintain individual health insurance coverage in the Washington health insurance market.

Kreidler has proposed a reinsurance program. This program would help encourage additional health plan options for the 2019 individual market. It would also lower premium increases by as much as 10%.

Our federal government over the past year has created a great amount of uncertainty within the individual health insurance market throughout our nations states. Kreidler said these effects have been felt in their state. What would help is a reinsurance program that could counter negative effects while providing an increase in stability to the market which is a vital lifeline to many consumers in his state.

Using reinsurance will provide health insurers a partial reimbursement for the high cost medical claims which exceed certain thresholds. It is typically claims for very extreme and serious health issues as with cancer, pre-mature births, or complications with diabetes to name a few.

This legislation has two main co-sponsors; Sen. Annette Cleveland in Vancouver and Rep. Eileen Cody in Seattle.

It is paramount residents have Affordable options in the quality valued health care, said Cody who is the chair of the House Health Care and Wellness Committee. The proposal gives opportunity to provide over 300k people more confidence they will have heath care when needed and making it more affordable. This is a viable way many Washingtonians can be protected form the efforts to undermine gains made over the last year in the health insurance coverage.

The estimated annual cost is $200 million for the reinsurance program. About one fourth would be paid for by the federal government. An assessment on the health insurers and the entities which administer the group health plans in the state. Enrollees for Medicare and Medicaid which is paid with federal funds would be omitted in the assessment.

The model for Kreidlers proposal is based on a national reinsurance program which was in effect during 2014-2016 which lowered premiums for Washington enrollees as well as enrollees throughout the nation. The states uninsured rate dropped around 6%.

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