(Salem) -- Oregon is one of the first three states to receive funding from the Centers for Medicare and Medicaid Services to support a state reinsurance program. The state's award will be approximately $54 million.

The Oregon Reinsurance Program, created during last year's legislative session, spreads the risk of high-cost claims among all insurance companies to steady the individual health market. The Oregon Department of Consumer and Business Services will manage the program.

"This federal funding recognizes our work to provide comprehensive health insurance options for Oregonians," said Cameron Smith, director of the Department of Consumer and Business Services. "The Oregon Reinsurance Program will help provide market stability for over 200,000 individuals, and encourage insurance companies to offer plans in every corner of the state."

The reinsurance program will be funded by the federal award, funds from the Oregon Temporary Reinsurance Program that ended in 2016, the Oregon Health Insurance Marketplace assessment, and the assessment that was approved by the Measure 101 vote.

Now that funding is secured, the department can set operating parameters and guidelines for the reinsurance program. Estimated funding will be more than $90 million for 2018.

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About DCBS:
The Department of Consumer and Business Services is Oregon's largest business regulatory and consumer protection agency. For more information, visit www.dcbs.oregon.gov.