(From The Washington Examiner)
The Trump administration has approved a plan in Wisconsin allowing the state to shore up its Obamacare market.
The plan is expected to lower premiums in 2019 by an average of 3.5 percent. Without it, premiums would rise by 11 percent in 2019, even after seeing hikes of 44 percent for 2018.
“People in the individual market saw their premiums go up by 44 percent on average last year, and some saw much larger increases – that’s unsustainable and unacceptable,” said Republican Gov. Scott Walker, an Obamacare opponent. “Thankfully, the federal government is giving us the flexibility to implement a Wisconsin-based solution to help stabilize premiums. Our Health Care Stability Plan is simple and it lowers costs. “
The plan is approved through a waiver that is commonly known as an “innovation waiver.” The specific waiver in Wisconsin will set up a reinsurance fund that keeps premiums at bay by funneling government money toward the most costly medical claims. The state will pay for $50 million of the reinsurance and the federal government will pay $150 million.
Wisconsin is the first state to have such a waiver approved in 2018; three other states have had reinsurance waivers approved in previous years.