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Officials, insurers urge legislature to renew reinsurance assessment to keep premiums lower
Summary
Regulators and insurers told the House committee that the Oregon Reinsurance Program modestly lowered individual market premiums and that House Bill 2010 would extend the premium assessment that helps fund the program; speakers warned of federal pass‑through funds at risk if action is delayed.
Regulators and insurers told the House Committee on Behavioral Health and Health Care on Jan. 23 that Oregon’s 1332 waiver and the Oregon Reinsurance Program (ORP) have reduced individual market premiums and that House Bill 2010 is needed to continue the program and related premium assessments.
Noomi Bridal Griffith of the Division of Financial Regulation explained that Oregon operates a 1332 waiver allowing the state to run a reinsurance program that pays part of very high individual claims; she said ORP lowered individual market premiums by about 6% and that the state received roughly $68,000,000 in federal pass‑through funds this year. The program uses federal pass‑through dollars plus a 2% assessment on health insurance premiums; Bridal Griffith said the 2% assessment is split roughly with 1.7 percentage points going to the Oregon Health Plan and 0.3 percentage points retained by DCBS to administer the assessment.
Why it matters: Bridal Griffith said House Bill 2010 would extend several expiring health assessments, including the premium assessment that funds Medicaid and supports ORP. Carriers and regulators said the funds lower premiums in the individual market and support Medicaid financing. Carriers warned that if the package is not passed early, the state could lose federal pass‑through funds; during the hearing officials said Congress or federal approvals mean the state could forfeit “about $90,000,000” if the bill isn’t signed by an April 1 deadline.
Carriers on the panel reiterated support for timely action. Mary Anne Cooper of Regence and other insurers told legislators the assessment is important to stabilize the market and to reduce the premium burden on consumers.
Ending: Committee members flagged the bill as a priority bill for early February and were reminded that the ORP and assessment are linked to federal approvals and to a broader Medicaid funding package the legislature must consider.
