Phase 3: Waves 2 & 3: working-age adults · Step 3.3

Wind down the private health insurers

Years 1–5 · State insurance commissioners; NAIC; UHADiscuss this step

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Task 3.3.2 of 6

Prohibit dividend payouts and buybacks until run-off reserves are certified adequate.

Who does it

State regulators

When

Year 1+

Trade-off

Barring dividends protects reserves but hurts shareholders who expected payouts.

Part of: Wind down the private health insurers

Insurers' UHP-duplicative business ends. They must process all claims for prior coverage (run-off), protect policyholders, and convert or close in an orderly way. The 'Net cost of insurance' line falls from $306.0B to $26.4B.

This step changes 4 existing laws, programs, or institutions. See the list.