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CMS has approved 12 states 1332 waivers to use expanded subsidies to drive down premium costs.
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(AP Photo/Alex Brandon, File)
DENVER – On Tuesday, Sept. 7, the Centers for Medicare and Medicaid Services announced that it is now offering funding to Colorado and 12 other states to support the Affordable Care Act Section 1332 reinsurance waivers. This nearly $50 million for Colorado’s Reinsurance Program comes from expanded subsidies of individuals buying health insurance from the individual market, instead of an employer, as part of the American Rescue Plan.
“$50 million of new federal funds will save Coloradans even more money on health care through the bipartisan Colorado Reinsurance Program,” said Governor Jared Polis. “By slashing health care premiums, Coloradans will have more money in their pockets for groceries or gas while also ensuring quality, affordable health care is available to every Coloradan. This $50 million in additional funds for Colorado’s Reinsurance Program will be used to further reduce insurance premiums.”
The Colorado Division of Insurance administers the Reinsurance Program, lowering premiums and offering affordable coverage by reducing the financial impact of high-cost health insurance claims.
“The work of the Polis-Primavera administration and the work of the Division of Insurance continue to help Coloradans by making health insurance more affordable. This additional funding will not only help to decrease premiums and get more people covered, but it also helps to strengthen the reinsurance program,” said Colorado Insurance Commissioner Michael Conway.
The funding doled out by CMS ranges from $2.5 million to $139 million per state – varying on factors such as the size of a state’s reinsurance program. The exact amount Colorado will receive in additional pass-through funding will be $49,827,328. The 1332 waiver gives Colorado the ability to fund a substantial amount of the Reinsurance Program with federal funds—dollars that would not have otherwise come to the State. The additional pass-through dollars adds to that funding.
In 2020, the first year of reinsurance, the program saved people 20% on their health insurance. In 2021, it saved Coloradans nearly 21%.
Find more information about the Colorado Reinsurance Program at the DOI’s Reinsurance website.