Rhode Island Reinsurance Program Could Cut 2020 Premiums

Thanks to a reinsurance program approved by the Rhode Island General Assembly in 2018, many Rhode Islanders will see a drop in their insurance premiums in the coming year. Because of the program, rates will drop for some residents, rather than increase as originally expected.

The Office of the Health Insurance Commissioner approved rates for 2020 that cut more than $15.5 million from rate increases requested by insurance providers.

For many Rhode Islanders who purchase their insurance from the individual market, premiums will go down in 2020.

"I'm proud to be a part of developing innovative solutions to address the soaring costs of insurance. Ultimately, this is about saving Rhode Islanders money — particularly small-business owners who are often in the individual market — and doing everything we can do to control the soaring costs of insurance premiums," Representative Deborah Ruggiero, the bill's sponsor, said.

The reinsurance program was designed to cover some of the costs of the most expensive insurance claims, taking some of the financial burden away from Rhode Islanders. The program was included in this year's state budget bill. Had the program not gone into effect, individual premiums would have gone up by an average of seven percent in 2020 from this year's rates.