Sen. Susan Collins, R-Maine, is now requesting $10 billion over two years to establish a reinsurance fund, more than double the $4.5 billion she originally requested for the legislation, according to The Hill.
Ms. Collins first proposed the reinsurance bill in September with Sen. Bill Nelson, D-Fla., to establish a fund that reimburses insurers for extremely high-cost patients. The hope is that these funds will keep premiums down and avoid turning ACA marketplaces into high-risk pools after the individual insurance mandate is repealed.
Senate leaders agreed to pass the reinsurance and Alexander-Murray bills to gain Ms. Collins' support for the tax bill. She believes those measures will counteract any negative effects from the individual mandate repeal included in the tax legislation.
According to Ms. Collins, the reinsurance program has been proven to lower premiums when applied at the state level.
"This plan will provide $5 billion annually for two years in seed money for states to establish invisible high-risk pools or traditional reinsurance programs," Ms. Collins said, according to The Hill. "We know from experiences in the states of Maine and Alaska that high-risk pools can help to lower premiums substantially — by an average of 20 percent."
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