Table 2.
Projected Total Reinsurance Costs for a Hypothetical 2020 Reinsurance Program by Payment Rate, Attachment Point, State, and Year.
| Attachment point, $ | Projected reinsurance costs and standard deviations, $ billions |
||||
|---|---|---|---|---|---|
| National | California | Florida | Illinois | Texas | |
| 90% Payment rate | |||||
| 20,000 | 18.0 (1.9) |
2.3 (0.4) |
1.6 (0.3) |
0.8 (0.2) |
1.3 (0.3) |
| 40,000 | 10.7 (1.2) |
1.4 (0.3) |
1.0 (0.3) |
0.5 (0.2) |
0.7 (0.2) |
| 60,000 | 7.2 (0.9) |
0.9 (0.2) |
0.7 (0.2) |
0.3 (0.2) |
0.5 (0.2) |
| 80% Payment rate | |||||
| 20,000 | 16.0 (1.9) |
2.1 (0.4) |
1.4 (0.3) |
0.7 (0.2) |
1.1 (0.3) |
| 40,000 | 9.5 (1.2) |
1.2 (0.3) |
0.9 (0.3) |
0.4 (0.2) |
0.7 (0.2) |
| 60,000 | 6.4 (0.9) |
0.8 (0.2) |
0.6 (0.2) |
0.3 (0.2) |
0.4 (0.2) |
| 70% Payment rate | |||||
| 20,000 | 14.0 (1.9) |
1.8 (0.4) |
1.2 (0.3) |
0.6 (0.2) |
1.0 (0.3) |
| 40,000 | 8.3 (1.2) |
1.1 (0.3) |
0.8 (0.3) |
0.4 (0.2) |
0.6 (0.2) |
| 60,000 | 5.6 (0.9) |
0.7 (0.2) |
0.5 (0.2) |
0.2 (0.2) |
0.4 (0.2) |
Note. All hypothetical programs have a reinsurance cap of $250,000. Expenditures are converted into 2020 dollars using the medical Consumer Price Index (2008-2017) and the National Health Expenditures Accounts projections (2018-2020). Payment rates are the percentage paid to insurers within the reinsurance corridor (eg, $40,000-$250,000).