HB 2406 Summary

• Creates the Oklahoma Individual Health Insurance Market Stabilization Program as a nonprofit entity to provide payments to health insurance plans for eligible individuals in the individual health insurance market, with the goal of lowering premiums.

• Establishes a nine-member Board of Directors appointed by the Insurance Commissioner consisting of insurance company representatives, health maintenance organization representatives, healthcare professionals, reinsurer representatives, and members of the general public.

• Authorizes the Board to implement market stabilization activities including high-risk pools, reinsurance programs, or hybrid programs, with operations contingent on Oklahoma obtaining federal approval and funding (such as a Section 1332 State Innovation Waiver).

• Requires all health insurers and reinsurers to pay annual assessments determined by the Board, with the option for interim assessments; allows assessed amounts to be included in premium rate calculations but prohibits premium tax credits for assessment payments.

• Provides that the Program shall sunset if Oklahoma fails to secure federal approval of a 1332 waiver or federal grant funding within two years, with remaining funds returned to insurers on a pro rata basis.