Big ‘I’ Commends ACA-Related Regulatory Efforts

Earlier this week, the Big “I” responded to a proposal by federal regulators to amend current rules surrounding open enrollment and special enrollment periods for both state and federal health care exchanges.

Released last month by the U.S. Department of Health and Human Services (HHS), the rule is intended to help stabilize the individual and group health markets.

In response to the proposed regulation, the Big “I” submitted a comment letter to the HHS outlining which provisions the association supports, and including suggestions for further strengthening and streamlining the proposal. In the letter, the Big “I” specifically notes its support for giving insurance companies the ability to collect unpaid premium amounts before issuing new coverage; late enrollment penalties to encourage continuous coverage; and numerous changes intended to streamline enrollment during special enrollment periods in order to avoid gaming and adverse selection.

However, the association also notes concerns that an HHS proposal to shorten the 2018 open enrollment period would hinder the ability of insurance agents and brokers to provide critical guidance to potential policyholders.

Lastly, although it was not the topic of the rulemaking, the association urged the HHS to reconsider the rules that regulate the medical loss ratio (MLR) to ensure appropriate treatment of agent and broker commissions. Since 2011, insurance companies are only permitted to spend a certain amount on administrative expenses.

While the Big “I” believes it is important that consumers get value for their health care dollar, the rules that the HHS put in place to implement the MLR inappropriately classify agent and broker commissions. This misclassification has resulted in insurers reducing or eliminating commissions in order to decrease their administrative expenses.

The Big “I” will continue working with the HHS and Congress on issues related to health insurance market stabilization, as well as the MLR.

Jennifer Webb is Big “I” federal government affairs counsel.