Reinsurance Association of North Dakota


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

“The heavy burdens created by the ACA continue to cause an increase in premiums which requires us to look at what we can do at the state level, within the constraints of the ACA, to help our consumers,” Godfread said. “HB 1106 is the result of working with our insurance companies and our legislative leaders for the betterment of North Dakota consumers.”

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.

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