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Federal regulators sign off on health reinsurance program in Montana

The Centers for Medicare and Medicaid Services have approved a healthcare reinsurance program in the state of Montana.

Montana's state auditor in a press release said managed care companies have reacted to the Montana Reinsurance Program by proposing to lower individual market health insurance rates for the 2020 plan year. The program was first proposed in 2017 and signed into law earlier this year.

Blue Cross and Blue Shield recommended a 6.7% decrease for the 2020 plan year, not including the impact of the reinsurance program. When including the reinsurance program's impact, PacificSource proposed a 13.4% overall average decrease, while Montana Health Cooperative suggested an 8% overall average decrease for its members.