In June, Alaska passed legislation to earmark $55 million for at least one year to cover its sickest residents’ healthcare costs. Medical costs for a small group of Alaska’s sickest residents fueled premium increases of nearly 40 percent annually for approximately 23,000 customers on the individual exchange market. Under the reinsurance program, premiums for individual plans through Premera Blue Cross — the one remaining insurer on the state’s exchange — will increase 7.3 percent on average next year, instead of the 42 percent Premera initially planned before the legislation.
The division posted an application Wednesday stating by paying for the most costly members on the individual public market through Alaska’s reinsurance program, the federal government will save $51.6 million in 2018, according to an actuarial report. Alaska hopes the savings will come back to the state.
If the application is approved, federal funding would commence in January 2018 and last five years.
More articles on payer issues:
Fitch issues negative outlook for health insurers due to leverage, exchange profitability concerns
ACA plan enrollment up 97k from last year
Anthem starts Cigna deal defense: 4 takeaways
