The Centers for Medicare & Medicaid Services (CMS) has approved Alaska’s application for a Section 1332 State Innovation Waiver.

Section 1332 waivers allow states to waive certain provisions of the Affordable Care Act and pursue alternative reforms, as long as they provide comparable access and affordability without adding to the federal deficit.

Alaska is pursuing this waiver model in an effort to stabilize the state’s individual health care market. The five-year waiver allows for implementation of the Alaska Reinsurance Program (ARP). The state-run ARP, which begins in 2018, will cover claims in the individual market for participants with high-cost conditions to lower premiums for other consumers. Alaska projects the program will lower premiums by 20 percent in 2018 and could raise the number of insured in the state.

Alaska is the second state to receive approval for a Section 1332 waiver, following approval of Hawaii’s waiver in January.

Contact Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.