NAIC Response To White House Health Reform Summit

Copyright 2010 States News Service States News Service

February 25, 2010 Thursday

LENGTH: 605 words

HEADLINE: NAIC RESPONSE TO WHITE HOUSE HEALTH REFORM SUMMIT – STATEMENT FROM NAIC PRESIDENT JANE CLINE AND HEALTH COMMITTEE CHAIR SANDY PRAEGER

BYLINE: States News Service

DATELINE: KANSAS CITY, Missouri

The following information was released by the National Association of Insurance Commissioners (NAIC):

National Association of Insurance Commissioners (NAIC) President, West Virginia Insurance Commissioner Jane Cline, along with NAIC Health and Managed Care Committee Chair, Kansas Insurance Commissioner Sandy Praeger, today issued the following statement in regard to the White House Health Reform Summit:

“There has been a lot of discussion about a provision in the President’s health care reform plan that would grant the Secretary of Health and Human Services some authority over proposed health care premium increases.

“State insurance regulators are very pleased that the President’s overall proposal emphasizes state-based reforms. The plan includes state-designed Exchanges and considerable flexibility for states to implement the federal standards in a way that best meets the needs of their populations.

“We also applaud the insurance market reforms which guarantee that individuals will be able to purchase insurance even with pre-existing conditions and ensure that individuals are not rated based on health status. However, we remain concerned about the inadequacy of the individual mandate which could lead to a dysfunctional marketplace and higher rates for consumers. We are hopeful this critical issue will be addressed.

“Finally, the members of the NAIC are strongly opposed to any bill in which the federal government allows insurance carriers to sell their products in our states using the regulatory rules of another state. This misguided proposal would increase premiums for those who need insurance the most and eliminate important consumer protections. It would also fragment the insurance market and expose consumers to increased fraud and abuse. This concept must be rejected and the decision whether to allow, and under what conditions to allow, interstate sales of insurance should be left up to the individual states.”

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

LOAD-DATE: March 2, 2010

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