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NAIC Group Approves Model Law for Health Insurance Exchanges

An NAIC subgroup has approved a draft model law for use in creating state-managed health insurance exchanges under the Affordable Care Act. It leaves many...
November 23, 2010

An NAIC subgroup has approved a draft model law for use in creating state-managed health insurance exchanges under the Affordable Care Act. It leaves many options for managing and governing the exchanges up to the individual states to craft. The model lays out a basic framework for complying with the federal health reform law. While the federal law requires that exchanges be run by a governmental agency or nonprofit entity, the model does not recommend a particular option. The NAIC draft does not address regional exchanges or agreements for interstate exchanges, which are permitted under the act if approved by the U.S. Department of Health and Human Services.

Office of Health Insurance Exchanges Director Joel Ario says the creation of state-based insurance exchanges will pose challenges, but he hopes they will prove as useful to individual and small-group markets as the employer-based system for large-group coverage. "It's going to take a partnership with the states and a partnership with the insurance industry," says Ario. Despite talk about a repeal of the health reform law, Illinois Insurance Director Michael McRaith believes the exchanges will stay put. "The exchanges, in my view, can be differentiated from other aspects of health reform," he says. "Health insurance reform is going to be very difficult to repeal."

Click here to read Exchanges Are Popular But Complex (Politico 11/16/10)

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