Delaware 1332 reinsurance assessments on health insurance carriers
Delaware Commissioner of Insurance Trinidad Navarro issued a bulletin notifying health insurance carriers that offer plans – individual, group, or otherwise – in Delaware of this year’s assessment for the state’s reinsurance program.
Under the Affordable Care Act, Delaware has a 1332 waiver, which gives the state some wiggle room to try innovative strategies to extend consumer health care coverage. Since 2019, Delaware has used the waiver to establish a reinsurance program that collects assessments from the health insurance market of the state. The DOI uses those funds to reimburse carriers that offer individual market plans for a percentage of their annual claims.
The idea behind the Delaware Reinsurance Program is that it incentivizes more people – even those who don’t qualify for federal premium tax credits – to participate in the health insurance marketplace, spreading risk, and decreasing premiums for the market as a whole.
“All consumers in the individual market are expected to continue to benefit from increased stability due to an expectation that overall membership in the single risk pool would continue to increase due to lower premium rates,” said the bulletin.
Health insurance carriers’ assessment is 2.75 percent of its net total premium in Delaware.
The state also issued a bulletin encouraging carriers and pharmacy benefits managers to waive prior authorization requirements for brand-name drugs in an effort to open access for patients whose generic drugs are currently in short supply.
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