The Alaska House has voted to bail out the state\u2019s high-risk health insurance market to reduce the possibility of a collapse.<\/p>\n
Lawmakers on Monday approved House Bill 374, which calls for subsidizing some health insurance plans with $55 million. The money will come from taxes levied on most insurance policies \u2500 including ones that aren\u2019t healthcare-related.<\/p>\n
The bill must be approved by the Senate and signed into law by Gov. Bill Walker to become effective.<\/p>\n
Last week, the director of the Alaska Division of Insurance warned members of the House Finance Committee that without action, the state\u2019s individual health insurance market could collapse.<\/p>\n
\u201cI can\u2019t imagine in 2018 we\u2019re going to have insurance throughout the state, if we don\u2019t do something,\u201d Lori Wing-Heier told lawmakers.<\/p>\n
Wing-Heier\u2019s warning was first reported by Rachel Waldholz of the Alaska Public Radio Network.<\/p>\n
Because Alaska\u2019s population is so small, it has fewer healthy policyholders to balance the costs of paying for the sick few. Aggravating that problem is the high cost of health care in the 49th state.<\/p>\n
Insurers have repeatedly asked for steep premium increases, but the state has put the brakes on those. Wing-Heier\u2019s division has tried to shield Alaskans from sticker shock by approving smaller increases than requested.<\/p>\n
In response, many have left Alaska\u2019s individual health insurance marketplace. Since 2013, three have left the marketplace, leaving only Premera, which is expected to raise rates again.<\/p>\n
\u201cIt\u2019s expected that in 2017, there will again be a significant increase,\u201d said Rep. Kurt Olson, R-Soldotna.<\/p>\n
By paying for high-risk plans \u2500 those covering Alaskans with chronic medical problems \u2500 the state is trying to discourage Premera from raising rates. The state previously offered a tax credit on such plans, and now it is attempting a direct subsidy.<\/p>\n
Rep. Lora Reinbold, R-Eagle River, was the sole \u2018no\u2019 vote.<\/p>\n
\u201cThis is another casualty of the failed federal government policies\u201d known as the Affordable Care Act, she said. \u201cIt is not the Affordable Care Act; it is the unaffordable care act.\u201d<\/p>\n
Rep. Dan Saddler, Reinbold\u2019s fellow Eagle River Republican, said the bill isn\u2019t a case of propping up the ACA \u2500 it\u2019s an attempt to keep the state from being required to set up an entire health care insurance company of its own.<\/p>\n
If Premera withdraws from Alaska, Saddler said, the state might have no choice but to set up its own healthcare insurance program at a cost of hundreds of millions of dollars.<\/p>\n
HB 374 now advances to the Senate for consideration.<\/p>\n
\u2022 Contact reporter James Brooks at james.k.brooks@juneauempire.com.<\/p>\n
Related stories:<\/p>\n
Moda out of Alaska in 2017<\/a><\/p>\n Alaska, Oregon lift suspension of insurance carrier<\/a><\/p>\n Healthcare market on last life<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"