Nevada is gambling on the success of a public private partnership, where the state government will now compete with insurance carriers while using those same insurance carriers to provide a more affordable health care option for state citizens. They follow in the footsteps of Colorado and Washington, both of which just passed similar legislation. Illinois, New Mexico and Oregon are considering the same.
The Nevada law requires some insurers to bid to offer plans starting in 2026, with the goal to have these plans priced 5% less than other popular plans, and 15% less over four years. The enforcement mechanism has not yet been established. The law is intended to achieve lower costs by paying doctors, hospitals and other providers less than what they are currently being reimbursed by insurers. This may end up resembling some of the “skinny networks” which have already become notorious in California and other states. Not exactly a solution, but a start…and we may see more of the same within the halls of Congress, as the public option may return there as a compromise measure to ward of Medicare for All.