National Association of Insurance and Financial Advisors

NAIFA Comments on Selling Health Insurance Through State Compacts

NAIFA President Jill Judd recently submitted a comment letter to the federal Centers for Medicare and Medicaid Services on proposals that would allow state Health Care Choice Compacts to sell insurance coverage across state lines. Judd wrote that NAIFA "generally supports proposals that aim to increase consumer choice, lower premiums, and foster greater competition in the health insurance market" for individuals and groups.

However, NAIFA is concerned that consumer protections under the compacts may not be comparable from state to state. This could allow insurers to choose their own regulator "based in a state with lesser consumer protection standards." Judd suggests that a remedy to the problem would be to ensure "that the strongest consumer protection statutes and regulations in one state should be applicable to all states operating in the Compact." These strong consumer protection measures should be in place to avoid what state insurance regulators have said could be a regulatory “race to the bottom.”

NAIFA is also concerned that some state compacts may require health plans to offer minimum benefits that exceed requirements of the Affordable Care Act. These requirements can increase the cost of insurance, making it unaffordable for some consumers. NAIFA supports giving consumers the ability to choose coverage that best suits their needs.
  • Posted May 2, 2019 IN

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