A 30-day public comment period began this week on the state’s application for a federal waiver to create a public health insurance option.
The public comment period, which began on Monday and runs through December 20, is the first formal step in seeking approval from the Centers for Medicare and Medicaid Services (CMS) for the waiver, which would allow Nevada to create a state-run public health insurance option by 2026.
Legislation enacted in 2021 called for the creation of a public health insurance option that would be administered by the state of Nevada through contracts bid by insurance companies. The public option would require health insurance premiums for the public option to be at least 15% lower than plans in the state health insurance option over the next four years. Premiums for the public option must be 5% lower than the benchmark premiums for bronze, silver and gold plans by zip code.
However, Governor Joe Lombardo, who opposes the public option, recently announced his intention to use federal funds made available through the waiver to also fund – and prioritise – a reinsurance programme for private companies operating in the individual market.
Lombardo is also asking CMS to approve the use of federal funds to create an annual bonus payment program for insurance companies “that make strides in improving health outcomes and quality of care,” as well as a loan repayment program for providers who commit to living and practicing in the state for at least four years.
Insurance rates on the state’s health exchange rose an average of 2.8% last year, while individual premiums not offered on the exchange rose 5.9%, according to the Nevada Department of Insurance.
A 2022 state actuarial report found that the public option would have a “small negative impact on provider revenue” because the individuals who would benefit from the public option only make up about 3% to 4% of the state’s population and a small proportion of provider revenue.
An organisation allied with the insurance and health care industries released a report earlier this month arguing that the public option would exacerbate the state’s provider shortage and reduce access to care.
Nevada physicians with the Committee to Protect Health Care, which disputes the industry report and supports the public option, “urged residents to share their health care stories as part of the public comment process.”
“We are encouraged that the public option continues to move forward as an innovative, unique path to accessible, affordable health care for Nevada families. While insurance companies continue to try to undermine the Public Option, doctors continue to support it because we know it will reduce health care premiums by 16 percent over four years, make coverage more affordable for 92,500 Nevadans, and save Nevadans nearly $500 million,” Dr. Harpreet Tsui, a Las Vegas internist and Nevada lead for the Committee to Protect Health Care, said in a statement.
Nevadans can view the draft bill, public notices, meetings, the state’s economic analysis and comment procedures on the state Department of Health and Human Services website.
The state’s waiver application must be submitted to CMS by 1 January 2024.
