Description:
The bill would Appropriate $10 billion annually, beginning in 2020, to fund state or federal reinsurance programs in the nongroup insurance market or to establish state-run subsidy programs to reduce premiums and out-of-pocket costs for nongroup plans sold through the marketplaces established under the Affordable Care Act Estimated budgetary effects would primarily stem from Spending from the Improve Health Insurance Affordability Fund for states and insurers to implement reinsurance programs and for state-based subsidy programs for coverage purchased through the marketplaces Reducing premiums for nongroup insurance coverage, which would lower the net cost of federal subsidies for coverage purchased through the marketplaces Areas of significant uncertainty include Identifying the number of states that would operate their own subsidy programs instead of reinsurance Estimating the effects on costs, premiums, and coverage arising from various states’ approaches to operating subsidy programs Estimating the reductions to premiums that insurers might make in response to reinsurance programs
