In 2019, during the 66th Legislative Assembly, the ND Insurance Department proposed legislation, HB 1106 relating to establishing an invisible reinsurance pool for the individual health insurance market.  This bill resulted from the Center for Medicare & Medicaid Services (CMS) approval of the Section 1332 Waiver of the Affordable Cares Act (ACA).

This bill outlined a plan to develop the creation of a reinsurance mechanism that would be what has been referred to as “invisible” reinsurance.  Therefore, creating the Reinsurance Association of North Dakota (RAND) for the consumers of North Dakota

The intent of RAND was to reduce premiums by providing reinsurance coverage for insurance companies selling in the state’s individual health insurance market. RAND pays 75% of the claim amounts, for individual policies, between the attachment point and $1,000,000. The attachment point adopted was $100,000.  RAND is funded by a combination of federal funds and assessments upon insurance companies selling in the state’s health insurance market.

Questions on the administration of RAND can be directed to the department at 701-328-2440.