Maryland Health Benefit Exchange managers are starting to figure out how to use a new, temporary, $20 billion federal reinsurance program.
The exchange hopes to get $194 million in Transitional Reinsurance Program cash for 2014, and total of $390 million over three years.
Managers will divvy up the cash in the next few weeks, in time to help carriers build the reinsurance payments into their 2015 rate proposals.
Michele Eberle and Rebecca Pearce detailed the program in a presentation for the exchange board.
Fully insured and self-insured plans will fund the program with an assessment of $5.25 per member per month.
Agencies “will begin true operations of [the] program in April 2014,” Eberle and Pearce said.