HB 2277: insurance; study; reinsurance programs; appropriation

Sponsor:   Representative Butler, LD 28

Committee on Commerce

Overview

Directs the Department of Insurance and Financial Institutions (DIFI) to conduct a study regarding establishing a reinsurance program for individual or small group markets.

History

Reinsurance is the transaction whereby an assuming insurer (reinsurer), in consideration of premium paid, agrees to indemnify another insurer (ceding company) against all or part of the loss which the ceding company may sustain under a specified policy or group of policies which it has issued. The reinsurer shares the risk with the ceding company and receives a portion of the premium paid on the policies.

A State Innovation Waiver, as provided in the Patient Protection and Affordable Care Act, allows a state to waive requirements related to qualified health plans, health insurance exchanges, premium tax credits, cost-sharing subsidies, the individual mandate, and the employer mandate.   In the absence of these requirements, a state is to implement its own plan to provide health insurance coverage to state residents that meets the ACA   s terms.

Provisions

Reinsurance Study (Sec. 1)

1.   Instructs DIFI to contract with a qualified health care consultant or actuary to conduct a study regarding establishing a reinsurance program for individual and small group markets using a State Innovation Waiver.

2.   Requires the qualified consultant or actuary to assess reinsurance program options using existing insurer data and compare programs that have been implemented in other states.

a)   Requires consulting with insurers that offer health plans on the health insurance exchange.

3.   Directs the qualified consultant or actuary, by July 1, 2022, to complete a specified report.

a)   Outlines the contents of the report.

4.   Instructs DIFI, by August 1, 2022, to submit the completed report to the executive and legislature and provide a copy to the Secretary of State.

5.   Appropriates an unknown amount in FY 2021-22 to DIFI to contract and conduct the study.

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                                  HB 2277

Initials PRB                     Page 0 Commerce

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