Maryland eyes PPACA reinsurance program

Maryland is keeping its individual and small-group risk pools separate, and the reinsurance program would have no direct effect on the state’s group health market. But the program could affect whether the state’s individual commercial health insurance market survives PPACA, and how easy it is for employers to send workers to get coverage in the individual market.

The program also could affect how much individual health coverage costs, officials said.

The Centers for Medicare & Medicaid Services using a comparable program to try to protect the carriers in the Medicare Advantage market against adverse selection.

Eberle and Pearce said the Maryland exchange is working with a consulting firm to understand how to set up the reinsurance program and hiring an actuarial consulting firm to analyze how the insurance market might work.

The exchange is also studying how the reinsurance program will work at the federally run exchanges.

See also:

• Carriers concerned about costs
• PPACA spurs rising interest in self-funded plans
• Navigator grant money comes with regulations