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American Rescue Plan Distributing Additional $452 Million through CMS

Funding to help states lower health coverage costs and increase affordability for Americans

Sept 15, 2021 – The Biden-Harris Administration recently announced an additional $452 million to be distributed by CMS to select states. The funds are earmarked for states that use reinsurance waivers to provide more affordable healthcare coverage to residents. This is done by reimbursing insurers for a portion of health care provider claims that would otherwise be paid through higher consumer premiums.  

The funds, known as pass-through funding are available for states that have approved section 1332 waivers. States must also have lowered premiums when implementing their waiver plans. The pass-through funding will be utilized by states to implement the waiter programs.

Strong Support from Biden-Harris Administration Appointees

“This investment is a testament to our Administration-wide commitment to making health care more accessible and affordable,” said HHS Secretary Xavier Becerra. “This funding from the American Rescue Plan will reduce monthly health care costs for consumers, increase coverage, and provide more options.”

CMS Administrator Chiquita Brooks-LaSure also spoke on the benefits that the funding stating, “Reducing a family or individual’s average monthly health coverage costs frees up that money for other needs.”

Pass-Through Funding Recipients

13 states are receiving pass-through funding through section 1332 state-based reinsurance waivers.

The following states will receive additional pass-through funding:

  • Alaska: $43,827,328
  • Colorado: $49,892,498
  • Delaware: $10,821,203
  • Maine: $8,562,238
  • Maryland: $139,159,548
  • Minnesota: $64,969,985
  • Montana: $7,129,995
  • New Hampshire: $8,820,847
  • North Dakota: $5,798,044
  • Oregon: $18,948,114
  • Pennsylvania: $28,558,672
  • Rhode Island: $2,590,540
  • Wisconsin: $63,408,562

New Jersey is also eligible, but their pass-through funding will be determined at a later date.

For more information, visit Section 1332 Waivers – List of State Applications and 1332 Data Brief.

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