The Section 1332 waiver approval came just over two weeks after CMS approved the state's "Pathways to Coverage" demonstration.
Centers for Medicare & Medicaid Services (CMS) and the Department of the Treasury approved Georgia's Section 1332 waiver Sunday afternoon.
The approval allows Georgia to implement a two-phase process, beginning with the establishment of a reinsurance program starting in plan year 2022. CMS stated that this move will reduce annual premiums in the individual market by an average of 10%.
The second step will be a transition of the state's individual market to "Georgia Access Model," a private sector platform. The move from the federal exchange created by the Affordable Care Act (ACA) will take place in plan year 2023.
"Since implementation, the Obamacare Exchanges have not worked for Georgians, leaving them with fewer options and skyrocketing premiums," CMS Administrator Seema Verma said in a statement. "Today’s approval of the state’s waiver will usher in a groundswell of healthcare innovation that will deliver lower costs, better care, and more choice to Georgians in the individual market."
Related: CMS Administrator Seema Verma Discusses Price Transparency, Value-based Care, and COVID-19
After CMS announced its approval, Governor Brian Kemp tweeted his appreciation and added that the state will "make healthcare accessible to thousands of Georgians and affordable for millions more!"
The Section 1332 waiver approval came just over two weeks after CMS approved the state's "Pathways to Coverage" demonstration.
The program, borne out of the Health Adult Opportunity guidance released by CMS earlier this year, will be implemented on July 1, 2021 and run through September 30, 2025.
CMS projected that 30,000 Georgians will gain access to Medicaid coverage in the first year, while almost 65,000 will enroll or receive Medicaid premium assistance for coverage through employer-sponsored coverage during the entirety of the program.
Related: CMS Approves Georgia's New Medicaid Section 1115 Demonstration
Georgia is now the sixteenth state to gain approval for a reinsurance program since 2017, according to the Kaiser Family Foundation.
Related: CMS Approves Colorado's Waiver for Reinsurance Program
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: MARIETTA, GA- SEPTEMBER 25, 2020: President Donald Trump greets Georgia Governor Brian Kemp and Georgia First Lady Marty Kemp upon exiting Air Force One at Dobbins Air Reserve Base. / Editorial credit: Evan El-Amin / Shutterstock.com