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Public option waiver approved; administration seeks actuarial support to maximize pass-through federal savings
Summary
The division said the recently negotiated federal waiver will free federal pass-through funds to support premium relief, reinsurance and targeted quality incentives; the administration requested actuarial services and noted year-one federal pass-throughs will be used first for premium relief and reinsurance.
The division presented account 3164, the public option account, which will capture pass-through federal funds tied to a federal waiver that the administration said Treasury and federal partners approved.
Administrator Stacy Weeks said the waiver and related actions (including a reinsurance approach and premium-reduction efforts) could generate roughly $300 million in federal funds over five years, and that year one of the program will prioritize premium relief and reinsurance. "We do have enough for year 1, with thanks to the treasurer's help," Weeks said.
The division asked the committee to approve funding for actuarial services and ongoing administrative support to document savings and produce the reports required under the waiver. Weeks said much of the first- and second-year administrative work will support federal reporting and actuarial certification to secure continued pass-through funding.
Why it matters: The public-option waiver is intended to lower premiums and improve market stability; federal pass-through funding will finance state programs if actuarial reporting and certification justify the savings.
Lawmakers sought confirmation that the public-option administrative costs will shift away from the general fund as pass-through funds arrive. Weeks replied that administrative support may still require some general-fund presence in the early years but that later years should be self-funded by pass-throughs and reinsurance savings.
Ending: Weeks said actuarial work will be ongoing: "Every year we're gonna be looking at proving how much we've saved the federal government," and the actuarial support requested would assist with that reporting and cost-certification work.
