State’s reinsurance plan approved; aims to lower premiums

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By: Holly Michels

The federal government on Friday approved the state’s plan to implement a reinsurance program.

The Centers for Medicare and Medicaid Services signed off on the state’s waiver, the governor’s and auditor’s office announced Friday…

In June, the three insurance companies that sell plans on the individual market in Montana — Blue Cross and Blue Shield of Montana, PacificSource and Montana Health Co-op — all proposed reduced rates for 2020, in part because of the reinsurance program. Decreases were from 8% to 14%…

Twice in 2017, the state Legislature passed bills that would have put Montana down the path of exploring a reinsurance program. But both bills were vetoed by Bullock…

State Auditor Matt Rosendale, whose office oversees insurance companies, also praised the approval.

“This is a big step in the right direction for many of the approximately 50,000 Montanans who get their health insurance through the individual market,” Rosendale said. “I’d like to thank the Trump Administration for making it a priority to allow states to innovate and create solutions that work best for our citizens. I’ve been fighting for a reinsurance program since I was first elected state auditor, and now Montanans are going to see the positive results.”

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