Bill > HB904

This bill establishes a reinsurance program in Ohio, overseen by the superintendent of insurance, to help manage the costs associated with individuals who have high healthcare needs, thereby stabilizing rates for health benefit plans. The program will involve applying for an innovation waiver under section 1332 of the Patient Protection and Affordable Care Act, commonly known as Obamacare, to secure federal funding. The reinsurance program will offer coverage to health plan issuers, which are companies that provide health insurance, with specific payment parameters: reinsurance will kick in after thirty thousand dollars in claims, the program will cover eighty percent of costs (coinsurance rate), and there will be a cap on the total amount covered by reinsurance at two hundred fifty thousand dollars, though these parameters can be adjusted annually based on available funds. To support this program, an Ohio reinsurance fund will be created in the state treasury, funded by federal money received through the waiver, additional federal reinsurance funds, and an annual assessment of one percent of gross premiums from health insuring corporations, which are entities that provide health insurance. The money in this fund will be used to pay for the reinsurance provided to health plan issuers.