President Barack Obama’s announcement that insurers can continue offering substandard healthcare policies through 2014 appears to have created a division among the nation’s insurance regulators.
While Obama asked to meet with members of the National Association of Insurance Commissioners Wednesday to discuss his latest proposal, six state commissioners refused his invitation.
In an email to colleagues, commissioners from Florida, Kansas, New Hampshire, North Dakota and Pennsylvania said they had “thoroughly deliberat[ed] on the matter” and decided to forgo the meeting due to “serious reservations about both the process and the policy issues surrounding such an important meeting.”
The commissioners noted that the meeting with the President had not been discussed “in any meaningful way” with NAIC’s membership, and felt unease that the group did not have a united position on policy extensions.
Three of the email’s signatories hold important leadership roles in NAIC. Adam Hamm, N.D., is NAIC president-elect; Monica Lindeen, Mont., is NAIC vice president; and Michael Consedine, Penn., is NAIC’s secretary-treasurer.
The refusal to meet with Obama is the latest in a series of announcements that reflects deep conflict within the association on extending non-compliant policies in the new year.
Already, half of state commissioners have announced their position on Obama’s proposal. While many are allowing insurers to continue offering the affected plans, state commissioners in states like Washington, Minnesota and Indiana are refusing to implement the administrative “fix,” citing fears that doing so will destabilize the health insurance marketplace.
The only thing the state commissioners appear to have agreed on is that Obama’s proposal would complicate matters for both themselves and health insurers participating in ACA marketplaces.
“It is unclear how, as a practical matter, the changes proposed…can be put into effect,” NAIC said in a statement. “In many states, cancellation notices have already gone out to policyholders and rates and plans have already been approved for 2013. Changing the rules…at this late date creates uncertainty and may not address the underlying issues.”
