Health Reform: NAIC Offers Full Support

 

Friday, Mar 27,2009, 1:02:48 PM   Click:

Praeger Says Reform "long", urges the federal state, coordination

WASHINGTON, DC (March 25, 2009) - The testimony on behalf of the National Association of Insurance Commissioners (NAIC), Kansas Insurance Commissioner Sandy Praeger Congress offered the assistance of state insurance regulators in the development of legislation to address health insurance access and affordability.

"State insurance regulators believe it is important to ensure that affordable, adequate health coverage is available for small business owners, their employees and individuals," said Praeger, who is also NAIC President and Chairman of the NAIC health insurance and care of the Committee. "The NAIC offers its full support in the development of federal legislation that will achieve this goal, a goal can be achieved only by the federal state of coordination."

Praeger submitted comments during a roundtable session of the Senate Health, Education, Labor and Pensions during a session titled "Coping with the market reform of national insurance Health Reform. "

"The years have been spent talking broad health care reform to ensure that all Americans have access to affordable health insurance and peace of mind that goes with it," said Praeger. "Action is long overdue and we are ready to help in any way possible."

Introduced at the hearing by Senator Pat Roberts (R-Kan.) - who described his many public services and experience with health reform as a mayor, state legislator and insurance Commissioner - Praeger highlighted four key principles for Congress to consider the adoption of health reform legislation:

Address health care spending. Any effort to increase access to insurance will not be successful over time, unless the core issue of rapidly rising costs of health care is also discussed.
Protect consumer rights. Member States already have the protection of the patient, the standards of solvency, programs to prevent fraud and the mechanisms in place to protect consumers, it should not be dismissed by the federal government. Praeger urged policymakers to preserve the surveillance state health insurance and to avoid prejudice or replace the state of consumer protection.
Avoid adverse selection. Any program that gives consumers a choice of two swimming pools with different opinions, allowances or conditions of access will result in negative selection in one of the pools. While subsidies or incentives might mitigate some of the problems of selection, the effectiveness of such incentives could undermine that costs continue to rise and premiums are rising.
Maintain a strong state role. Congress must carefully consider the impact of any new federal legislation on the reforms of the capacity to be effective partners in addressing the crisis of health care. In addition, the NAIC urges Congress to review federal laws and regulations that hinder efforts to reform the state health system.
"The NAIC encourages Congress to work with States and reform to draw lessons from the past," said Praeger. "Together, we can successfully implement initiatives to protect and assist effectively for all consumers."

About the NAIC

Established in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of chief insurance regulatory officials of the 50 states, the District of Columbia United States and five territories. The NAIC has three offices: Executive Office, Washington, DC, Headquarters, Kansas City, Mo., and securities valuation office of the New York City. NAIC serves the needs of consumers and industry with an objective to support the state regulation of insurance because they protect consumers and maintain the financial stability of the insurance market.