New Program Championed by Rosendale to Lower Health Insurance Rates
HELENA, Mont. – State Auditor Matt Rosendale today announced that the Trump Administration has approved a plan championed by Rosendale to lower health insurance rates in Montana while continuing to protect people with preexisting conditions.
The Centers for Medicare and Medicaid Services (CMS) gave the Montana Reinsurance Program a green light to start lowering health insurance rates in the 2020 individual market. Health insurance companies have already proposed between eight and 14 percent lower rates on average next year because of the reinsurance program. Rosendale expects those proposed rates, including the impact from the approved reinsurance program, to be finalized with his office soon.
“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.”
“I will keep working to further lower the cost of health insurance, health care, and prescription drugs, protect people with preexisting conditions, and give Montanans more options to get good, affordable health care,” Rosendale said.
Reinsurance provides a financial backstop against high-cost insurance claims, allowing insurance companies to mitigate risk and decrease prices while continuing to provide insurance to Montanans with preexisting and expensive medical conditions.
Rosendale proposed creating a reinsurance program in 2017. After two vetoes that year, a new bill establishing the Montana Reinsurance Program passed the legislature with strong bipartisan support and was signed into law earlier this year.
“I appreciate the cooperation from Montana’s three main health insurers, the governor’s office, and legislators to get this program in place for 2020,” Rosendale said.
For more information on 2020 health insurance rates and reinsurance, see:
“Insurers propose reduced premiums for individual policies” Associated Press