(a)  The director is authorized to establish and implement a state-based reinsurance program, to be known as the Rhode Island reinsurance program:

(1)  To provide reinsurance to carriers that offer health insurance coverage on the individual market in the state;

(2)  That meets the requirements of a waiver approved under 42 U.S.C. § 18052; and

(3)  That is consistent with state and federal law.

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(b)  The program is intended to mitigate the impact of high-risk individuals on health insurance rates offered in the individual insurance market on and off of the exchange.

(c)  The director is authorized to establish reinsurance payment parameters for calendar year 2020 and each subsequent calendar year that include:

(1)  An attachment point;

(2)  A coinsurance rate; and

(3)  A coinsurance cap.

(d)  Carriers must provide the exchange and the office of the health insurance commissioner with data the director prescribes by rules and regulations as necessary to determine reinsurance payments in a time and manner determined by the director.

(e)  The director may alter the parameters established in accordance with subsections (c) and (d) of this section as necessary to secure federal approval for a waiver submitted in accordance with § 42-157.1-6.