BULLETIN 23-EX-6: NOTICE OF 1332 INNOVATION WAIVER PARAMETERS

BULLETIN 23-EX-6

TO: ALL INSURERS OFFERING ACA-COMPLIANT PLANS IN GEORGIA

FROM: JOHN F. KING INSURANCE AND SAFETY FIRE COMMISSIONER

DATE: MAY 11, 2023

RE: NOTICE OF 1332 INNOVATION WAIVER PARAMETERS ______________________________________________________________________________

The State of Georgia’s Office of Commissioner of Insurance has set the parameters for the 1332 Waiver Reinsurance Program Plan Year (PY) 2024:

• Attachment Point: $35,000 • Cap: $500,000 (unchanged from PY 2023) • Co-insurance Rates (unchanged from PY 2023):

Tier 1: 15% (includes rating regions 2, 3, 5, 8, 14) Tier 2: 45% (includes rating regions 1, 7, 9, 12, 16) Tier 3: 80% (includes rating regions 4, 6, 10, 11, 13, 15)

Georgia’s Reinsurance Program will apply to all ACA-compliant, non-grandfathered individual market plans and will be a claims-based model with an attachment point, cap, and a tiered coinsurance rate. The attachment point is where the program will begin to reimburse the carrier for a percentage of high-cost claims up to the cap amount. The applied coinsurance rate will be based upon rating region. Higher coinsurance rates will be applied to higher-cost regions to encourage carriers to participate in more regions across the state and bring the premiums in these regions closer to the statewide average.

More detail on Georgia’s Reinsurance Program can be found within the State’s approved waiver at https://www.cms.gov/CCIIO/Programs-and-Initiatives/State-Innovation- Waivers/Section_1332_State_Innovation_Waivers- #Section_1332_State_Application_Waiver_Applications

For questions about the implementation and operations of the Reinsurance Program, please reach out to the OCI Reinsurance team at [email protected] _____________________________________________ JOHN F. KING INSURANCE AND SAFETY FIRE COMMISSIONER STATE OF GEORGIA