DENVER – On Tuesday, September 7, the Centers for Medicare and Medicaid Services announced that they are now providing funding to Colorado and 12 other states to support reinsurance waivers under Section 1332 of the Affordable Care Act. This nearly $ 50 million for Colorado’s reinsurance program comes from increased subsidies to individuals who buy health insurance from the individual market, instead of an employer, as part of the US bailout. .
“$ 50 million in new federal funds will save Coloradians even more money on health care thanks to Colorado’s bipartisan reinsurance program,” Governor Jared Polis said. “By reducing health care premiums, Coloradians will have more money in their pockets for groceries or gasoline while ensuring quality and affordable health care for every Coloradan. This $ 50 million in additional funds for Colorado’s reinsurance program will be used to further reduce insurance premiums.
The Colorado Insurance Division administers the reinsurance program, reducing premiums and providing affordable coverage by reducing the financial impact of costly health insurance claims.
“The work of the Polis-Primavera administration and the work of the Insurance Division continue to help Coloradans by making health insurance more affordable. This additional funding will not only help reduce premiums and cover more people, but it will also help strengthen the reinsurance program, ”said Colorado Insurance Commissioner Michael Conway.
The funding distributed by CMS ranges from $ 2.5 million to $ 139 million per state – varying depending on factors such as the size of a state’s reinsurance program. The exact amount Colorado will receive in additional funding will be $ 49,827,328. Waiver 1332 gives Colorado the ability to fund a substantial amount of the reinsurance program with federal funds, dollars that would not otherwise have reached the state. The additional transfer dollars are in addition to this funding.
In 2020, the first year of reinsurance, the program saved people 20% on their health insurance. In 2021, it enabled the Coloradans to save almost 21%.
Find more information about Colorado’s reinsurance program on the DOI’s reinsurance website.