Insurance Commissioners ‘Concerned By’ Obamacare Fix

Health and Human Services Secretary Kathleen Sebelius testifies on Capitol Hill in Washington, Wednesday, Oct. 30, 2013, before the House Energy and Commerce Committee hearing on the difficulties plaguing the impleme... Health and Human Services Secretary Kathleen Sebelius testifies on Capitol Hill in Washington, Wednesday, Oct. 30, 2013, before the House Energy and Commerce Committee hearing on the difficulties plaguing the implementation of the Affordable Care Act. The Obama Administration claims the botched rollout was the result of contractors failing to live up to expectations – not bad management at HHS. As the public face of President Barack Obama's signature health care program, Sec. Sebelius has become the target for attacks over its botched rollout with Republicans, and even some Democrats, calling for her to resign. (AP Photo/J. Scott Applewhite) MORE LESS
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The National Association of Insurance Commissioners, which represents state regulators nationwide, said it was “concerned by” the Obamacare fix proposed Thursday by the White House.

NAIC’s reaction is particularly notable because, as a letter sent by the administration to insurance commissioners indicates, the fix relies on state authorities implementing it.

“We… are concerned by the President’s announcement today that the federal government would use its ‘enforcement discretion’ to delay enforcement of the ACA’s market reforms in 2014 for plans that are currently in effect,” NAIC President and Louisiana Insurance Commissioner Jim Donelon said in a statement. “This decision continues different rules for different policies and threatens to undermine the new market, and may lead to higher premiums and market disruptions in 2014 and beyond.”

“In addition, it is unclear how, as a practical matter, the changes proposed today by the President can be put into effect. In many states, cancellation notices have already gone out to policyholders and rates and plans have already been approved for 2014. Changing the rules through administrative action at this late date creates uncertainty and may not address the underlying issues.”

“We look forward to learning more details of this policy change and about how the administration proposes that regulators and insurers make this work for all consumers.”

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