State Reinsurance Program

During the 2018 legislative session, the Maryland General Assembly passed House Bill 1795 – Establishment of a State Reinsurance Program. Gov. Larry Hogan signed House Bill 1795 on April 5, 2018.

House Bill 1795, as an emergency measure, directs the Maryland Health Benefit Exchange to submit a State Innovation Waiver to the U.S. Secretaries of Health and Human Services and the Treasury to establish a State Reinsurance Program. The purpose of the State Reinsurance Program is to mitigate the premium impact of high cost enrollees on carriers that participate in the individual market. The State Reinsurance Program will reduce rates from what they would have been without the program, creating premium relief for Marylanders who have experienced high rate increases on their health insurance premiums.

SUBMITTED APPLICATION:
Please see the submitted application at the link below:

Summary of State Reinsurance Program Regulations Hearing Testimony and Written Comments

Final Maryland 1332 State Innovation Waiver to Establish a State Reinsurance Program – May 31 2018

Maryland 1332 State Innovation Waiver to Establish a State Reinsurance Program UPDATED August 15, 2018

Please see the analysis performed by Wakely Consulting Group on the interaction between the Reinsurance and Risk Adjustment programs below:
Wakely Consulting Group Analysis on Reinsurance / Risk Adjustment Interaction – Draft

MHBE Board Resolution on Interaction Between Risk Adjustment and Reinsurance Programs

PUBLIC COMMENT AND HEARINGS:

The Maryland Health Benefit Exchange hosted four public hearings. Dates, times and locations follow.

1. July 26, 2-4 p.m.

Location: Maryland Health Benefit Exchange, 750 E. Pratt St., Baltimore, MD 21202.

Participant Dial-in Number: (833) 640-6816, Meeting Number: 5877647

2. Aug. 2, 2- 4 p.m.
Location: Maryland Health Benefit Exchange, 750 E. Pratt St., Baltimore, MD 21202.
Participant Dial-in Number: (833) 640-6816, Meeting Number: 2454605

3. Aug. 9, 1-3 p.m.
Location: Maryland Department of  Transportation, 7201 Corporate Center Drive, Hanover, MD 21076.
Participant Dial-in Number: (833) 640-6816, Meeting Number: 5675147

4. Aug. 16, 2-4 p.m.
Location: Maryland Health Benefit Exchange, 750 E. Pratt St., Baltimore, MD 21202.
Participant Dial-in Number: (833) 640-6816, Meeting Number: 9285299

A summary presentation of proposed, and incorporated comments can be viewed here.

PROPOSED STATE REINSURANCE PROGRAM REGULATIONS

House Bill 1795 requires the Maryland Health Benefit Exchange to adopt regulations implementing the State Reinsurance Program. These regulations must take effect by Jan. 1, 2019. As part of the regulatory process, the Maryland Health Benefit Exchange hosted a series of hearings to engage with the public to discuss the scope, design, and goals of these regulations. The Maryland Health Benefit Exchange staff considered all comments and feedback and incorporated input that was deemed appropriate. The updated proposed regulations can be viewed here.

RESOURCES:

Enacting Legislation:
HB 1795 – Establishment of a State Reinsurance Program
SB 387 – Maryland Health Access Act of 2018

Authorizing Resolution:
MHBE Board Resolution on the State Reinsurance Program and Submission of a State Innovation Waiver Application – April 16, 2018
Section 1332 Waiver -Public Comment – Board Presentation – May 21, 2018
Resolution 1332 State Innovation Waiver Application – May 21, 2018

MORE INFO:

1332 State Innovation Waiver