CMS approved a proposal from Maryland lawmakers to institute a reinsurance program to help shore up ACA markets, according to The Hill.
The program would provide payments for insurers who cover extremely sick patients. It is valued at $462 million and will run from Jan. 1 through 2020. Maryland officials estimate the reinsurance program will prevent premium increases of up to 30 percent in the state's individual markets.
"With our innovative new reinsurance program, the health insurance market in Maryland will finally have the chance to be competitive and dynamic," Maryland Gov. Larry Hogan said in a prepared statement. "These cost reductions and this competition will lead to more insurers entering the market and make healthcare more affordable for all Marylanders."
CMS Administrator Seema Verma said President Donald Trump's administration is committed to providing states with the flexibility required to lower premiums.
"The reinsurance waiver we approved today will provide immediate help to Marylanders being priced out of coverage, and I appreciate Gov. Hogan's leadership in making Maryland the seventh state to gain approval for such a waiver," said Ms. Verma.