Section 1332 Reinsurance Waiver Application Approval and First Year Parameter; Notice 2020-20

NOTICES

INSURANCE DEPARTMENT

Section 1332 Reinsurance Waiver Application Approval and First Year Parameter; Notice 2020-20

[50 Pa.B. 4217] [Saturday, August 15, 2020]

On July 24, 2020, the Centers for Medicare & Medicaid Services, a division of the United States Department of Health and Human Services, and the United States Department of the Treasury, approved the Insurance Department's 1332 Waiver Application. This approval is effective for a waiver period of January 1, 2021, through December 31, 2025, with a provision for a possible extension at the end of the initial term.

The reinsurance program will be a claims-based, attachment point reinsurance program that will reimburse health insurers for claims costs of qualifying Affordable Care Act-compliant individual enrollees, where a percentage of the claims costs exceeding a specified threshold (attachment point) and up to a specified ceiling (reinsurance cap) will be reimbursed. For the first year of the program, beginning January 1, 2021, the adopted parameters are an attachment point of $60,000, a cap of $100,000 and a coinsurance rate of 60%.

Any questions regarding this notice may be addressed to the Bureau of Life, Accident and Health, Insurance Department, 1311 Strawberry Square, Harrisburg, PA 17120, [email protected].

JESSICA K. ALTMAN,

Insurance Commissioner

[Pa.B. Doc. No. 20-1125. Filed for public inspection August 14, 2020, 9:00 a.m.]