Walker: Private Market Insurance Rates to Drop 4.2%

Gov. Scott Walker says health insurance rates for plans sold in the private market under the Affordable Care Act will drop next year by more than 4 percent.

The reduction is attributed to a new reinsurance program Walker signed into law this year that takes effect in 2019. It’s a $200 million program that’s part of Walker’s plan to lower health insurance costs in¬†Wisconsin.

Walker on Thursday said the 4.2 percent reduction estimate was based on based on rate filings received by the Wisconsin Office of the Commissioner of Insurance and a report completed by Wakely Consulting Group.

Under the program, the government will provide money to health insurance providers to pay about 50 percent of medical claims costing between $50,000 and $200,000 starting next year.