Pennsylvania Gets Federal Approval on Reinsurance Program Application

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HARRISBURG, Pa (Newsradio 1020 KDKA) - Pennsylvania's waiver application for its reinsurance program has received approval from the U.S. Department of Health & Human Services and U.S. Department of the Treasury.

Governor Tom Wolf made the announcement on Friday that the program can operate from 2021 through 2025 under the Affordable Care Act.

“By having a reinsurance fund that will directly pay some of the health care costs for high-cost individuals, we can lower premiums for other insured Pennsylvanians on the individual market and reduce the cost for subsidies to help low-income individuals,” Gov. Wolf said. “These savings further our goal of making sure health insurance is affordable and effective for all Pennsylvanians.”

The Wolf administration said the program strengthens' the states individual health insurance market. The waiver allows states to make modifications to some rules within the ACA to customize health care coverage options available to residents.

Insurance Commissioner Jessica Altman said, “This historic step towards a healthier Pennsylvania will expand access to affordable and comprehensive health care coverage, benefiting Pennsylvania’s health insurance consumers. As a result of the waiver approval, more Pennsylvanians may have access to coverage and consumers will see moderated premiums.”

Related

According to the Pennsylvania Insurance Department website, to be approved for the waiver, the state had to meet with the following requirements:

  • provide coverage that is at least as comprehensive as ACA coverage;
  • provide coverage that is at least as affordable as ACA coverage;
  • provide coverage to a comparable number of state residents; and
  • not increase the federal deficit. 

The state is expected to have its own health insurance marketplace in operation this fall.

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