Maine is the first state to combine its individual and small group insurance markets under the ACA, according to the Press Herald.
Through an act passed in 2020, the state is merging the two markets to bring stability to small businesses that get their insurance through the small group market. The change should not destabilize the individual market, which has been experiencing growth while the small group has been declining.
Between 2019 and 2022, small group rates have gone up 31 percent. Over the same period, individual rates have gone down 14 percent.
When the markets are combined, the small group market will be put into the Maine Guaranteed Access Reinsurance Association, which allows the state to provide reinsurance, according to the Press Herald.
The move will go into effect in 2023, contingent on federal approval.