The proposal aims to lower insurer fees and decrease premiums, according to the Gazette.
Prior to the proposal, the Arkansas Health Insurance Marketplace implemented a similar state-based exchange, but for small businesses. Last year Gov. Hutchinson asked the agency to not expand the state-based exchange for individuals.
Arkansas insurers currently face federal fees equal to 3.5 percent of collected premiums. If the governor’s proposal is implemented, insurers would no longer face federal fees. Rather, Arkansas would pay a federal government fee equal to 1.5 percent of the insurers′ premiums. This rate is transitional and will increase in 2017, according to the Gazette.
The change has yet to be approved. If considered, Arkansas will become one of 13 states to implement state-based exchange programs for individuals.
More articles on payer issues and Arkansas:
Arkansas governor provides lifeline for state’s hybrid Medicaid expansion
Arkansas governor wants new boundaries for Medicaid expansion
Arkansas governor petitioned to restore insurance coverage for 53k: 4 things to know
