NAIC STATEMENT ON PRESIDENT OBAMA'S ANNOUNCEMENT REGARDING ONE YEAR EXTENSION FOR EXISTING PLANS

[FarCenter]

http://www.naic.org/Releases/2013_docs/naic_president_obama_one_year_extension_existing_plans.htm

WASHINGTON, D.C. (Nov. 14, 2013) — The following is a statement from NAIC President and Louisiana Insurance Commissioner Jim Donelon on the Obama Administration's announcement regarding policy cancellations and the role of state insurance regulators.

We share the President’s and Congress’ concerns about policy cancellations and issues including gaps in coverage that may result from them, and fully understand the anxiety of the residents of our states who have received these notices. This anxiety is especially heightened given the issues with the federal exchange.

For three years, state insurance regulators have been working to adapt to the Affordable Care Act in a way that best meets the needs of consumers in each state. We have been particularly concerned about the way the reforms would impact premiums, the solvency of insurance companies, and the overall health of the marketplace. The NAIC has been clear from the beginning that allowing insurers to have different rules for different policies would be detrimental to the overall market and result in higher premiums.

We have expressed these concerns with the Administration and 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. 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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About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.

[Sheepshank]

1. In other words....

Insurance spokes person: "shit!!! We've been caught with our hands in the cookie jar and we have to hurry and make a new cookie jar so that we can continue to gouge.....err continue to eat all the cookies"

edited for a little clarification

[FarCenter]

2. How do you get that out of the statement by the state insurance regulators?

[Sheepshank]

5. the impression I received after reading certain platitudes and connections that don't exist

..shared concern that insurance companies lied to public about options available...shared concerns that fees were predicted to go up to insure the solubility and continued viability of insurance companies. And since the insurance companies didn't play nicey nice and truthfully with admin and the public the first thing they predicwith this announcement is another increase in premiums..just off the top of their heads with no studies, not numbers and no actuarial back up..

[JaneyVee]

3. Boo-fucking-hoo. Keep threatening us and we'll move to single payer sooner than later.

[Savannahmann]

4. Astounding

You honestly believe that if we fuck this up so badly that the majority of the people will support single payer? if your mechanic fucks up an oil change do you go back to him to rebuild the engine? No you go to a different mechanic.

[Sheepshank]

6. actually, since much of the public angst is being driven by insurance lies and misdirection....

...I think she is right. People are less likely to trust insurance companies with their health care plans.

[JaneyVee]

7. Huh? Where did I say fuck this up? I'm talking about the insurance industry

continuously threatening the American people with rising costs and higher premiums. At some point a huge majority of Americans will be priced out of private insurance market and start enrolling in Medicaid.

[Savannahmann]

8. No they won't.

The majority of the states don't offer the Medicare participation as part of the ACA. So a majority of Americans who don't buy insurance will be facing higher and higher fines for that, who are they going to blame? The insurance company or the politicians who put the fines in place?

[tblue37]

9. The way Repub states refused to expand Medicaid might be an issue to run on in 2014. nt

[Laelth]

10. Sigh. k&r for exposure. n/t

-Laelth