On Nov. 25, 2024, DEL INS reissuedBulletin 113, procedures to collect an assessment that funds the reinsurance program, carriers must pay assessment by Mar. 1, 2025.
CMS approved program request to take effect for 2020 plan year, in effect until 2025.
On Jul. 31, 2024, CMS approved the extension, extended program to Dec. 31, 2029.
On Nov. 30, DEL INS bulletin on reinsurance program assessment.
DEL INS reissued Bulletin No. 113 regarding the implementation of the DEL health insurance individual market stabilization and reinsurance program assessment.
Provided updates for assessment year 2022, reminded carriers of payment obligations.
Bulletin No. 113 originally published in 2019, created procedures for the collection of assessments that provides, in part, the funding for the reinsurance program, #64141.
(Bulletin was published on Nov. 30, 2021; entered into Reg-Track on Dec. 13, 2021).
Reinsurance Program
Insurers who offer coverage in Delaware's individual market are reimbursed by the reinsurance program for a percentage of the annual claims incurred per member.
Claims must be between a defined specified lower threshold and upper threshold.
Due to the reimbursement, it is expected insurers will incur lower costs for plans and that those lower costs will be passed on to consumers in the form of lower rates.
Reinsurance program took effect for 2020 plan year, will remain in effect until 2025.
Assessment Fee
Program is funded with passthrough funds received by ACA, funds provided by federal government for reinsurance, and through an annual assessment paid by carriers.
All carriers providing health insurance in the State are required to pay the assessment.
The assessment is equal to 2.75% of all amounts used to calculate an entity's Delaware premium tax liability or the entity's premium tax exemption value.
Assessment payments due Mar. 1; payment must include associated assessment form.
Established penalty for late payments; confirmed assessment is tax-deductible.
Assessment to be distributed to DEL health care commission (DHCC) by Apr. 15, 2022.
Effectiveness
Assessments must be submitted with the associated form no later than Mar. 1, 2022.
Bulletin is effective immediately and will remain in effect until withdrawn/superseded.
Nov. 2024 DEL INS Implementation
On Nov. 25, 2024, DEL INS reissuedBulletin 113, procedures to collect an assessment that funds the reinsurance program, carriers must pay assessment by Mar. 1, 2025.
CMS approved program request to take effect for 2020 plan year, in effect until 2025.
On Jul. 31, 2024, CMS approved the extension, extended program to Dec. 31, 2029.
