Both the Maryland Senate and House of Delegates voted overwhelmingly to approve legislation that would allow the Maryland Health Benefit Exchange to apply for a 1332 waiver, and thereby create a state reinsurance program. The effort would help the state's two Exchange carriers, Kaiser Permanente and CareFirst mitigate their risk in offering plans on the Exchange's private insurance market.
By spreading out risk in this way, carriers would lose less on individual consumers and are better able to keep premium costs down. The ACA included provisions for reinsurance programs, but those provisions were removed by the current Administration.
"Because of the actions and inaction in Washington, the Affordable Care Act was poised to force health insurance rates for Marylanders to increase again by 50 percent or more. That is simply not acceptable," Hogan said during a press conference Monday. "Our administration has been working on potential solutions for more than a year. We came together and rolled up our sleeves to address this crisis head on."
Governor Hogan is expected to sign the legislation into law this week.