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