To enact sections 3902.81, 3902.82, and 3902.83 of the Revised Code to establish a reinsurance program.
Summary
HB904 would create a state-run health insurance reinsurance program in Ohio, administered by the Superintendent of Insurance. The program is intended to reduce the effect of high-cost enrollees on premiums in the individual and small-group health insurance market by reimbursing health plan issuers for a portion of claims that exceed a specified threshold. The bill also directs the superintendent to seek a federal Section 1332 innovation waiver under the Affordable Care Act so Ohio can receive pass-through federal funding to support the program.
The bill sets initial payment parameters for the reinsurance program: claims costs would begin to be eligible for reimbursement after an attachment point of $30,000, with the program paying 80% of eligible claims up to a $250,000 cap. The superintendent could adjust those parameters annually depending on available funding. HB904 creates the Ohio reinsurance fund in the state treasury and finances it through federal waiver pass-through funds, any additional federal funds available for reinsurance, and a new annual assessment on health insuring corporations equal to 1% of their gross premiums from the prior year.
Impact
HB904 would add three new sections to the Revised Code, creating a new statutory framework for reinsurance in Ohio insurance law. It would require the Department of Insurance to administer the program, apply for federal waiver approval, collect and manage dedicated funding in a new state treasury fund, and impose a new assessment on health insuring corporations. The bill would directly affect health plan issuers, health insuring corporations, and the state insurance market by shifting some high-cost claim risk away from insurers in hopes of stabilizing premiums.
Sentiment
The available record shows the bill was introduced and referred to the House Insurance Committee, but there are no recorded votes or committee transcripts in the provided materials. Based on the bill’s structure, the measure appears policy-driven and aimed at market stabilization rather than controversy in the available record. Because no discussion or vote history is included, there is no documented public sentiment beyond the fact that it advanced only to committee status at this stage.
Contention
The main potential point of contention is the new 1% annual assessment on health insuring corporations, which would be used to finance the reinsurance fund and could be viewed by affected entities as a cost increase. Another possible issue is reliance on a federal Section 1332 waiver, since the program’s funding and operation depend in part on federal approval and pass-through funds. The bill also gives the superintendent discretion to adjust payment parameters annually, which could raise questions about predictability for insurers and how the program would be calibrated over time.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3505.01 and 3505.10 of the Revised Code to modify the deadline for a political party to certify its nominees for President and Vice-President to the Secretary of State.
To delay the deadline for a major political party to certify its presidential and vice presidential candidates to the Secretary of State for the 2024 general election.