Dive Brief:
- A new proposed rule issued by the Obama administration would help health insurers that lose money by letting consumers keep plans that don't comply with the benefits standards of the ACA.
- The new rule's options include a cut in reinsurance taxes for individual plans sold on the exchanges, at least if they can demonstrate that they treat sicker, more costly patients.
- The cut in reinsurance taxes are part of a larger HHS proposal that sets standards for the ACA's premium stabilization programs, details mechanisms for the advance payment of premium tax credits and more.
Dive Insight:
In issuing this proposed rule, HHS is attempting to strike a balance which allows the administration to keep its ACA promises without scaring health insurers out of the exchanges. And help may be necessary. To date few insurers have been willing to renew the nonconforming policies, a situation which at minimum make the administration look bad. Something will have to give here.