Alaska has been federally cleared to implement a high-risk pool to help stabilize the individual health insurance market.
The Centers for Medicare and Medicaid Services on Tuesday announced approval of 1332 state innovation waiver to implement the Alaska Reinsurance Program starting in 2018.
Health and Human Services Secretary Tom Price has encouraged states to apply to waive requirements of the Affordable Care Act, saying in March "State Innovation Waivers that implement high-risk pool/state-operated reinsurance programs may be an opportunity for states to lower premiums for consumers, improve market stability, and increase consumer choice."
[Also: Tom Price wants governors to apply for Obamacare waivers as he works to dismantle Obamacare]
Alaskans have seen individual market premiums increase 203 percent since 2013, according to an HHS report.
At least four states have applied for waivers -- Alaska, California, Hawaii and Vermont.
Alaska requested, and was granted, a waiver that allows the state to implement the Alaska Reinsurance Program for the next five years.
The state-operated program will cover claims in the individual market for people with one or more of 33 identified high cost conditions. This is aimed at stabilizing premiums for healthier participants, CMS said.
Alaska projects that the program will reduce premiums by 20 percent in 2018, and more consumers may have coverage. Premiums for the second lowest cost silver plan will be reduced, resulting in fewer federal dollars spent on premium tax credits, CMS said.
Federal "pass-through" funding will help offset a substantial portion of the cost for the state-operated reinsurance program, CMS said.
CMS, the U.S. Department of Health and Human Services and the U.S. Department of Treasury approved the request.
"Today's approval will temporarily stabilize Alaska's individual insurance market, which only has one carrier and has experienced a 203 percent increase in insurance premiums since the Affordable Care Act began," said CMS Administrator Seema Verma.
In 2018, individuals obtaining coverage on the exchanges are facing significant premium increases and fewer options for coverage, CMS said in encouraging all states to apply.
"Alaskans have suffered greatly under Obamacare," said Health and Human Services Secretary Tom Price. "Washington does not have all the answers when it comes to healthcare. State Innovation Waivers are just one step of many we are taking to inaugurate a new era of state flexibility and innovation in healthcare, and we look forward to more productive work with our state partners."
Twitter: @SusanJMorse