$10.8M in federal funding earmarked for health coverage in DelawareSeptember 9, 2021
Delaware is set to receive more than $10 million in “pass through money” from the federal government to improve access to affordable health coverage in the state, Gov. John Carney said in a news release.
The funding comes through the Centers for Medicare & Medicaid Services and will benefit those participating in the state’s 1332 state-based insurance waiver.
“We are grateful to the Biden Administration for acknowledging the progress of our reinsurance program in making health insurance more affordable and more accessible on the individual market,” Carney said in the release. “During the COVID-19 pandemic, it is even more important that Delawareans have access to affordable coverage.”
The funding is available to states that have approved 1332 waiver programs “that also have lowered premiums in implementing their waiver plans,” the release reads.
Delaware is one of 13 states to receive the funding.
Carney signed legislation in June 2019 to “create a reinsurance plan” in the state, and in August 2019 Delaware received federal approval for the program, which began Jan. 1, 2020.
The legislation reimburses “a portion of high-cost health care claims” that traditionally “drive up insurance rates for everyone on the individual market,” the release reads. The fund uses a mix of federal funding and assessments collected by the Delaware Department of Insurance from health insurance carriers. The program is administered by the Delaware Health Care Commission.
Carney said in the release that “Delaware’s reinsurance plan, which is authorized by the federal government through 2024, has lowered premiums on the Health Insurance Marketplace an average of more than 19% in the first two years.”
“This investment is a testament to our Administration-wide commitment to making health care more accessible and affordable,” HHS Secretary Xavier Becerra said in the release. “This funding from the American Rescue Plan will reduce monthly health care costs for consumers, increase coverage, and provide more options. We will continue to work with states to strengthen the health care system as we respond to the COVID-19 pandemic.”
The reinsurance program not only reduces premiums on the marketplace, the release reads, and “benefits anyone who buys coverage on the individual market, including people who are not eligible for coverage at their workplace, those who are too young for Medicare or make too much money to be eligible for Medicaid, young people who have aged off their parents’ plans, or those who are self-employed.”
CMS Administrator Chiquita Brooks-LaSure said in the release the funding will allow families “to free up costs for other needs.”
“Reducing a family or individual’s average monthly health coverage costs frees up that money for other needs,” Brooks-LaSure said in the release.
“The Biden-Harris Administration continues to work with states to reduce costs and deliver more affordable health coverage options,” Brooks-LaSure said in the release. “This is another example of how the American Rescue Plan is helping more people meet their health care needs.”
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