DE| The revised Delaware Bulletin No. 113, issued by the Delaware Department of Insurance, provides updated procedures for assessing health insurance carriers to fund the state’s Individual Market Stabilization Reinsurance Program, aiming to maintain affordability and market stability as federal premium subsidies (APTCs) are set to expire in late 2025 unless extended. The assessment applies to most carriers operating in Delaware’s health insurance market, calculated at 2.75% of assessable premiums, and is due by March 1, 2026. The program offsets high-cost claims, reimburses insurers, and passes savings to consumers through lower premium rates, particularly benefiting unsubsidized enrollees. IRS treatment of the assessment as deductible for federal tax purposes is generally accepted, but carriers are advised to consult their tax advisors. Distribution of collected funds to the Delaware Health Care Commission is anticipated by April 15 each year, with the directive remaining effective unless updated by law or subsequent bulletins.

Key Points:

• The assessment is 2.75% of assessed premiums and must be paid by March 1, 2026, by health insurance carriers in Delaware.
• Certain types of insurance are excluded: Medicare, Medicaid, dental, vision, accident-only, long-term care, and disability insurance.
• The reinsurance program reduces insurers’ costs for annual claims, aiming to stabilize premiums for individual market enrollees.
• Unsubsidized consumers are expected to benefit most from lower premium rates, with increased market stability projected.
• IRS generally treats the assessment as deductible, yet carriers should seek guidance from tax advisors due to lack of specific IRS instructions for Section 1332 waiver assessments.

Click here to see Delaware Revised Insurers Bulletin No. 113