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NAIC Warns Congress Against Insurance Sales Across State Lines

In a letter to four U.S. House leaders, the National Association of Insurance Commissioners (NAIC) emphasized the importance of caution as lawmakers craft a replacement for the Affordable Care Act (ACA) and listed priorities among payers nationwide...
January 31, 2017

In a letter to four U.S. House leaders, the National Association of Insurance Commissioners (NAIC) emphasized the importance of caution as lawmakers craft a replacement for the Affordable Care Act (ACA) and listed priorities among payers nationwide. The NAIC specifically called on these leaders — Reps. Greg Walden (R-Ore.), chairman of the House Energy and Commerce Committee; Kevin Brady (R-Texas), chairman of the House Ways and Means Committee; and Richard Neal (R-Mass.), ranking member of the Ways and Means Committee — to provide greater flexibility to states when considering possible replacements for the ACA.

In addition, the NAIC denounced proposals that would allow for the sale of insurance across state lines and the existence of association health plans. According to the NAIC, the interstate sale of insurance would jeopardize consumer protections and eliminate the option for states to form agreements among themselves.

“We strongly oppose legislation that would preempt state authority,” the NAIC letter states. “We continue to see proposals that would preempt state licensing requirements and, thus, consumer protections by allowing sales across state lines by federal edict, without proper discretion for the states to form compacts between themselves. We also see proposals that would preempt state solvency requirements and regulations by creating federally licensed insurance pools called ‘association health plans.”

“Such federal actions would strip states of the ability to protect consumers and create competitive markets and should be rejected,” said the letter. “We encourage the committees to seek the input of state insurance regulators and the NAIC as you consider possible replacements to or amendments of the ACA.”