A House Bill that would adopt a federal medical reinsurance program failed to pass in the Commerce and Energy Committee.
State Representative Ryan Cwach sponsored the bill.
He says insurance premiums have gone down in the states with similar measures.
“In total 15 states, 12 have – in the last few years – lowered their premiums on an average of 16.9 percent and each state was able to do that because they adopted medical reinsurance programs, like I’m bringing before you today.”
Cwach says the money saved by the federal program is reinvested in the state.
Larry Dieter oversees insurance and securities for the South Dakota Department of Labor and Regulation.
He says federal waivers were part of the original Affordable Care Act and were meant to address availability problems.
“South Dakota has never really experienced availability issues and stability, across the country, has since greatly improved. 1332 waivers that were set up as reinsurance pools were, and are, not a universal answer in every state insurance market and – as stated – can be very complicated.
Dieter says the plan isn’t flexible enough and would require the state to cover any federal shortfalls.