Dive Brief:
- Alaska's House has voted in favor of a bill that would put up cash to help prevent the possibility that its individual health insurance market could collapse, the Juneau Empire reported.
- House Bill 374 would subsidize high risk health plans using $55 million that would come from a levy on non-healthcare related insurance policies.
- The legislation is moving on to the Senate for consideration and would then face a decision by Gov. Bill Walker.
Dive Insight:
The action follows a warning last week by Alaska Division of Insurance director Lori Wing-Heier that the state's individual market is facing a real possibility of collapse.
“I can’t imagine in 2018 we’re going to have insurance throughout the state, if we don’t do something,” the Empire quoted Wing-Heier.
Alaska is in a unique predicament because its population is small, leaving too few healthy enrollees to balance the sick, and because its healthcare is expensive. On top of that, its Division of Insurance has worked to hold back premium increases, resulting in three insurers leaving the market since 2013, with only Premera remaining.
Legislators hope that by covering high-risk plans for those with chronic medical issues, they can prevent Premera from increasing its rates or leaving the market.
Rep. Dan Saddler warned that if the market does collapse, Alaska may have to create its own health insurance plan at a far higher price.