Multistate Plans Should Face 'Level Playing Field,' Regulators Urge

The National Association of Insurance Commissioners expressed concern about a provision of the health law that could allow multistate insurance plans an advantage over smaller plans operating in health insurance exchanges.

The Hill: State Regulators Want 'Level Playing Field' For National Plans
The National Association of Insurance Commissioners (NAIC) said lax rules for national plans would create an unfair competition and deprive consumers of certain benefits. The health care law calls on states to establish insurance exchanges — new, competitive markets for individuals and small businesses to buy coverage. And to ensure some level of competition in every state, the law says two nationwide plans have to be offered in every state's exchange (Baker, 8/15).

CQ HealthBeat: Multistate Plans Should Comply With State Laws, Insurance Regulators Say
The nation's insurance regulators said Monday that they're worried a "loophole" in the health care law could allow multistate insurance plans to operate under more favorable rules than smaller plans in health insurance exchanges. The state insurance commissioners said in a letter to the Office of Personnel Management (OPM) that they have "serious concerns about the potential for market disruption and adverse selection, and the resulting negative impact on consumers and health insurance markets" (Norman, 8/15). 

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