Trump Administration Approves Montana Reinsurance Waiver
State Auditor Matt Rosendale announced that the Trump Administration has approved a plan to lower health insurance rates in Montana while continuing to protect people with preexisting conditions.
“This is a huge step in the right direction for many of the approximately 50,000 Montanans who get their health insurance through the individual market,” Rosendale said. “I would like to thank the Trump Administration for making it a priority and allowing the state to innovate and create solutions that work best for our citizens. I have been fighting for this reinsurance program since I was first elected State Auditor and now Montanans are going to see the positive results.”
Rosendale explained how they were able to lower prices.
“It basically gives the insurance companies the ability to buy insurance,” Rosendale said. “They are buying insurance to cover the very high and unpredictable claims that end up coming through for folks that have these preexisting and very expensive chronic conditions.”
Rosendale proposed creating a reinsurance program in 2017. After two vetoes that year, a new bill establishing the Montana Reinsurance Program passed the legislature and was signed into law earlier this year.
“We knew that is was a plan that worked,” Rosendale said. “We knew that it would help reduce rates. Now, everyone has recognized it and they have signed off on it. The insurance companies have proposed an 8 to 14% reduction in rates exclusively as a direct result of that legislation.”
According to Rosendale, folks will start seeing these savings when new rates come out in November.