Good News in New Jersey: CMS approves state reinsurance waiver
Some good ACA news out of New Jersey: CMS has approved the state's reinsurance waiver proposal, designed to reduce premiums by 15% in 2019.
The bill mandating pursuit of this waiver was paired with a bill establishing a state individual mandate, which according to the state Dept. of Banking and Insurance reduced requested rate increases by about 7%. Taken together, the mandate and reinsurance program will push 2019 premiums more than 20% below where they would have been absent these two programs and down an average of about 9% from this year. That in the wake of average increases of 22% for 2018.
It's worth tallying the various ways New Jersey has girded its individual market against Republican sabotage. The state
Enacted a state individual mandate modeled on the ACA mandate that Republicans zeroed out last December.
Obtained federal pass-through funding for a reinsurance program designed to reduce premiums by 15% -- also funded in part by revenue from the state individual mandate.
Bans the lightly regulated, medically underwritten short-term health plans that the Trump administration has unleashed to undermine the ACA-compliant market.
Checked the administration's loosening of the rules for association health plans via the individual mandate bill, with a provision requiring small business employees to obtain small group insurance to fulfill the mandate.
Instructed health insurers in the individual market to "silver load" the cost of CSR and encouraged them to offer silver plans free of the CSR load off-exchange.
Instructed all state agencies to promote enrollment for 2019.
These measures are sorely needed, as total individual market enrollment in New Jersey was down 11% from the first quarter of 2017 to Q1 2018.
Re-upping is a compendium of my posts and articles on this front, as well as outside efforts with BlueWaveNJ and the NJ for Health Care Coalition that I've been involved in.
Sabotage judo: States can turn individual mandate repeal to their advantage (12/14/18)
Impose a mandate and use the revenue to help fund reinsurance
How Gov. Murphy can protect NJ from Obamacare sabotage (NJ Spotlight, 1/17/18)
Specifics for New Jersey -- e.g. death spirals past
New Jersey bill aims to block Trump's proposed rule for Association Health Plans (3/3/18)
The mandate bill requires small group coverage for small biz employees
BlueWaveNJ testimony in support of individual mandate and reinsurance bills (3/8/18)
Highlights experience of individual market enrollees paying full freight
NJ is poised to fight off ACA sabotage: Is Gov. Murphy aboard? (NJ Spotlight, 3/10/18)
The delay was getting worrisome
NJ for Health Care Coalition letter urging governor's signature on mandate/reinsurance bills (5/30/18)
Addresses financial concerns as well as need for individual market relief
Time for New Jersey's health insurers to help counter Trump sabaotage (NJ Spotlight, 7/16/18)
Calls on insurers to maximize silver loading to offer silver plan discounts off-exchange