North Dakota Insurance Commissioner Jon Godfread announced that the federal government has approved a proposed state-based reinsurance program for the individual health insurance market.
The program will be in place for the 2020 health insurance plan year.
The reinsurance program will create a mechanism that allows enrollees to remain in the individual market with their current plans and carriers while a portion of their claims is reimbursed by the reinsurance pool.
For 2020 and 2021, the proposed reinsurance program will cover 75% of paid claims between $100,000 and $1 million. Each enrollee's health insurer will cover the remaining 25%. The program will be funded by federal funds and state assessments on companies that do business in the North Dakota group health market.
Estimated rate reductions from the reinsurance plan's implementation will average between 8% to 20% for plans purchased on the individual market, according to the regulator.