The National Association of Insurance Commissioners (NAIC) held a series of meetings last week in Washington D.C. to focus on healthcare implementation. The NAIC is assisting the federal department of Health and Human Services (HHS) in a variety of areas. HHS is the federal agency charged with coordinating the implementation of the new healthcare law. But since much of the new law will actually be implemented at the state level, state regulators working through the NAIC are heavily involved in the process.

The NAIC is seeking comments from the industry on a variety of critical issues that must be addressed now. Under the law, the state commissioners make recommendations on how to implement certain provisions of the Affordable Healthcare law, which must then be approved or modified by the Department of Health and Human Services.

One of the major tasks looming for the states will be the establishment of the new health insurance exchanges. PIA is involved in this process, working with the NAIC as a member of an ad-hoc task force it has formed to examine ways to continue ensuring that agents will continue to be involved in the healthcare market even after the new health insurance exchanges begin operation in 2014.

“A number of us feel very strongly about the important role agents play in providing advice and counsel to thousands of Floridians and Americans across the country in making critical healthcare decisions,” said Florida Insurance Commissioner Kevin McCarty, adding that some people have said the insurance exchange program will lessen the role of agents. “I disagree with that,” he said. “Agents serve as a valuable tool in providing health care, and we are working to protect the integrity of the relationship.” Sandy Praeger, Kansas insurance commissioner and chair of the NAIC health care task force, expressed support for the goal of keeping agents involved.

There was general agreement that individual states will need to set up task forces in order to gather information as the insurance exchanges are being set up. PIA members and PIA affiliates can assist with this effort. Each jurisdiction thinking of setting up an exchange will need to know everything they can about the nature of their current market before they can decide how to proceed with an exchange tailored to their market. We will need to engage this process at the state level, as well.

In addition to our conversations with regulators and legislators, PIA is working with other interested parties such as the National Association of Health Underwriters (NAHU) and insurance carriers such as Trustmark. PIA will also be providing valuable input to our state legislators as they look at legislation to give their regulators the authority they need to implement the necessary reforms.

The NAIC and the National Conference of Insurance Legislators (NCOIL) will concentrate on this issue during their next few meetings. The NAIC will focus on these issues again during its summer meeting in Seattle, from August 14-17; and NCOIL will address these issues during its annual meeting November 18-21 in Austin, Texas. PIA will attend both meetings. For additional information, contact David Eppstein davidep@pianet.org, PIA National Assistant Vice President of Regulatory Affairs.

July 28, 2010