1332 Waiver Application for Public Comment

May 15, 2019

About the waiver

Senate Bill No. 125, establishing a Montana public reinsurance program, was signed into law on April 30, 2019. SB 125 authorizes the governor, the insurance commissioner, and a governing board of the Montana Reinsurance Association created by SB 125 to jointly apply for a State Innovation Waiver from the federal government, and the public is invited to comment on Montana’s application. The waiver, also known as a 1332 waiver, is an opportunity for states to implement innovations that help increase access to quality, affordable health insurance for their residents. Federal savings from these changes can be used to fund innovation at the state level.

Montana intends to use the waiver authority to fund a Montana public reinsurance program. The reinsurance program will reimburse health insurance exchange insurers for certain high-cost claims in the individual health insurance market. The law provides that the reinsurance plan would use a mix of federal and state funds to produce individual health insurance premiums that are lower than they would be without the plan. Under the law, the reinsurance program will reimburse individual health insurers for a proportion (coinsurance amount) of the cost of certain high-cost claimants between a minimum lower bound (attachment point) and a maximum upper bound (cap).Montana also expects this will cultivate greater certainty in the market and facilitate insurance companies’ continued participation throughout the state in the individual market.

How to comment on the application:

Download the waiver application here to review it.

Although you may comment in person or in writing, if you comment in person, you are strongly encouraged to also submit comments in writing. Written comments, whether submitted in addition to or instead of in-person comments, will be accepted through June 17, 2019 at 3:00pm. Submit written comments by email to : Reinsurance@mt.gov

Additional information can be found at http://reinsurance.mt.gov/. The draft document will be updated as additional actuarial data becomes available.

The Montana Department of Administration will conduct two (2) public hearings regarding the Montana Reinsurance Waiver application. The meetings will consist of a presentation about the waiver, followed by time for questions and comments from the public. The meeting dates, times, and locations are:

Accessibility information:

Montana is committed to accommodating people with disabilities. will make reasonable accommodations for persons with disabilities who need an alternative accessible format of rule notices or provide reasonable accommodations at the public rule hearing site. If you need to request an accommodation, contact the department to advise us of the nature of the accommodation that you need at 406-444-5764 or via email at aconger@mt.gov.