The National Association of Insurance Commissioners (NAIC) wants Congress to establish health insurance exchanges that are administered by states, rather than create a new federal Health Choices Commissioner and Health Choices Administration. A coalition of health insurers agrees and has sent a letter to leaders in Congress.

NAIC President and West Virginia Insurance Commissioner Jane Cline says the NAIC supports provisions in the House and Senate healthcare reform bills that would grant guaranteed issue protections to the non-group health insurance market, ban annual and lifetime limits and exclusions for pre-existing conditions, and prohibit gender- and health-based policy rating “if they are paired with an effective individual mandate to mitigate the risk of adverse selection.”

Cline notes that state-based health insurance exchanges would “streamline the process of purchasing coverage and make meaningful comparisons of health insurance plans easier.” Among other things, the NAIC wants Congress to beef up penalties under the individual mandate provisions and ensure nationally-sold plans continue to be overseen by state insurance regulators.

Currently, the Senate-passed version of healthcare reform would create exchanges in the states, while the House-passed bill would mandate a national exchange.

Battle over ‘Exchanges’ Regulator (Wall Street Journal 1/8/10)

NAIC Statement (1/7/10)

January 13, 2010