AR| The Arkansas Insurance Department (AID) issued Bulletin No. 4-2025 to provide guidance for Plan Year 2026 individual, on-Marketplace rate filings. The bulletin addresses the uncertainty surrounding the extension of the American Rescue Plan Act (ARPA) tax credits and provides standardized instructions for applying a Cost Sharing Reduction (CSR) load to On-Marketplace Silver plans.
Key Points:
- Two Rate Scenarios Required: Insurers must submit two sets of rates—one assuming ARPA tax credits expire after 2025 and another assuming their extension through 2026—with detailed documentation for each scenario.
- Standardized CSR Load: AID mandates a uniform CSR load factor of 1.46 for On-Marketplace Silver plans, calculated using membership-weighted actuarial values and induced demand factors from 2025 enrollment data.
- Offsetting Adjustments: To maintain revenue neutrality, insurers must adjust premiums for non-Silver plans proportionally or exclusively for ARHOME plans, reflecting enrollment shifts and risk impacts in their filings.