LITTLE ROCK, Ark. (Press release) – The recent elimination of the Arkansas Health Insurance Marketplace user fee will save policyholders and taxpayers over $13 million.
Arkansas Insurance Commissioner Allen Kerr announced Wednesday that the approval by the Arkansas Insurance Department of Plan Year 2020 rate changes for individual health insurance policies sold on the AHIM will save Arkansas taxpayers and AHIM customers $13.14 million due to elimination of a fee charged to companies in previous plan years.
Kerr said, “Thanks to the wisdom of the Governor and General Assembly in transforming state government by placing AHIM under the Arkansas Insurance Department, I am pleased to announce that Arkansas taxpayers and policyholders will save a projected $13.14 million next year. I am also very proud of the work of AID’s Marketplace and Compliance divisions to effectively review these rate requests while establishing a more efficient approval process.”
Act 107 of 2019 disbanded AHIM as a private entity and returned the Marketplace to the Arkansas Insurance Department for this first time since 2015.
In previous plan years, AHIM charged a user fee to all individual policies to fund its operating budget. The most recent fee was 1.25% on top of the cost of a policies’ monthly premium.
All four insurers participating in the Marketplace in 2020 cited the elimination of the AHIM Exchange User Fee as a factor in their rate request.
Click here to see the rate requests approved for individual on-marketplace qualified health plans for Plan Year 2020.
Open Enrollment for the Marketplace begins on Nov. 1 and runs through Dec. 15.
Arkansans with questions about their health insurance policies can learn more by visiting http://myarinsurance.com, or by calling (844) 355-3262 toll-free.