The federal government has agreed to pay a larger share of the cost to cover Delawareans under the Affordable Care Act.
The Centers for Medicare and Medicaid Services (CMS) approved Delaware’s Department of Health and Social Services (DHSS) for a 1332 State Innovation Waiver under the ACA.
The waiver creates a reinsurance program—reimbursing some of the state’s most expensive health care claims from an estimated $27 million fund of mostly federal and some state money. The state funds will come from revenue generated under a new law allowing Delaware to collect assessments from health insurance carriers.
A recent analysis on state-run reassessment programs shows an average reduction in premiums of almost 20 percent in the first year. DHSS Secretary Dr. Kara Odom Walker says she expects the same in Delaware, coupling the waiver with rate drops already expected in Delaware’s individual marketplace.
“In out years we anticipate it’ll be up to 20% and we’re really excited about that reduction,” said Walker. “That’s a real reduction to people’s paychecks, to the money they take home and the money that is on the kitchen table to pay bills.”
But the fate of the ACA is currently being determined in the U.S. 5th Circuit Court of Appeals. Still, Walker says it’s important to move forward with the ACA provisions on the state level despite the uncertainty.
“Even if the ACA is not held up in court, there will still be many things to work out and many details that will have larger implications, not only in the individual marketplace, but also for those with Medicaid and those with preexisting conditions. So we will just wait and see,” she said.
Delaware is the 11th state to receive this ACA waiver. It goes into effect next year and is approved through 2024.
About 21,000 people enrolled for coverage on Delaware’s Health Insurance Marketplace in 2019.
