Appropriate $10 billion annually, beginning in 2020, to fund state or federal reinsurance programs in the nongroup insurance market or to establish state-run subsidy programs to reduce premiums and out-of-pocket costs for nongroup plans sold through the marketplaces established under the Affordable Care Act
Estimated budgetary effects would primarily stem from
Spending from the Improve Health Insurance Affordability Fund for states and insurers to implement reinsurance programs and for state-based subsidy programs for coverage purchased through the marketplaces
Reducing premiums for nongroup insurance coverage, which would lower the net cost of federal subsidies for coverage purchased through the marketplaces
Areas of significant uncertainty include
Identifying the number of states that would operate their own subsidy programs instead of reinsurance
Estimating the effects on costs, premiums, and coverage arising from various states’ approaches to operating subsidy programs
Estimating the reductions to premiums that insurers might make in response to reinsurance programs