CARSON CITY, Nev. (AP) — The board overseeing Nevada’s health insurance exchange has approved a fee schedule designed to make the program self-sustaining by 2015, when federal support is set to expire.
Nevada’s Silver State Exchange expects to charge fees that will average 1.7 percent of average premiums.
That compares with an exchange charge of 3.5 percent of average premiums at the exchanges to be run by the U.S. Department of Health and Human Services (HHS), Jon Hager, the executive director of the Silver State Exchange, said Thursday at a Silver State Exchange board meeting.
The Patient Protection and Affordable Care Act (PPACA) lets states run their own PPACA exchanges, or Web-based health insurance supermarkets, or let HHS provide exchange services for their residents.
Gov. Brian Sandoval, R, proposed that Nevada run its own exchange. State lawmakers approved the proposal in 2011.
The Nevada exchange must support itself and cannot draw cash from the general fund, Sandoval says.
Hager said the difference between the user fee rate that the Silver State Exchange will charge and the federal exchange rate will save Nevada consumers about $3.2 million.
PPACA calls for the federal government to pick up most of the PPACA exchange costs in 2014, but introducing the fee in the first year will help the Silver State Exchange generate about $10 million in revenue and help the exchange build up reserves that can be used to run the program when federal funding expires, officials said.
Health insurance plans that don’t include dental coverage will be charged $4.95 per month. Those that include dental will be assessed $5.31, while the fee for stand-alone dental coverage will be 36 cents.