On Feb. 27, 2018, Gov. Scott Walker signed the Wisconsin Health Care Stability Plan, a $200 million state-based reinsurance program for health carriers. Implementation of the program requires the Office of the Commissioner of Insurance (OCI) to seek a 1332 waiver from the federal government. OCI released the draft 1332 waiver, which is available for public comment until April 14.
OCI estimates the federal government will fund approximately 85 percent and the state will fund $30 million annually. For 2019 and depending on federal approval, OCI would set the payment parameters for the program so that the government would provide coinsurance payments for 50 to 80 percent of the cost for claims that are between $50,000 – $250,000. OCI estimates the Health Care Stability Plan will reduce premiums by 10.1 percent in 2019. For the subsequent years, OCI will work with an actuarial firm to adjust payment parameters.
During the public comment period, OCI is holding public hearings across the state. The Milwaukee public hearing is set for March 23 and the Madison hearing is scheduled for April 4. Once the public comment period is over and the comments are reviewed, OCI plans to submit the waiver by mid-April.
Comments may be submitted in writing via e-mail at: OCI1332WaiverComments@wisconsin.gov.
or mail at:
ATTN: JP Wieske, Deputy Commissioner
Wisconsin Office of the Commissioner of Insurance
PO Box 7873
Madison, WI 53707-7873