The National Association of Insurance Commissioners (NAIC) held its spring meeting from April 2-5 in New Orleans and NAHU was present throughout to monitor the proceedings and provide input to state insurance regulators. On Sunday, NAHU provided testimony during a public hearing held by the NAIC’s Health Insurance and Managed Care (B) Committee’s Regulatory Framework (B) Task Force’s Model #22 Subgroup. This subgroup has been convened by the NAIC to consider updating the organization’s Health Carrier Prescription Drug Benefit Management Model Act (Model #22), which was originally crafted back in 2003. The purpose of the public hearing was to seek views from stakeholders about the potential direction that the NAIC should take with regard to the model. NAHU testified that even though the model is more than 12 years old and could use some minor updates to account for the passage of the Patient Protection and Affordable Care Act and improvements to technology regarding electronic publication of formularies, overall the document has stood the test of time well. Furthermore, yet-to-be-finalized federal regulations on preventing discriminatory practices in health coverage could impact the direction of any potential update to the model. So NAHU recommended that the taskforce wait on updating the model and concentrate on other current priorities for the time being instead.

Some of the other health-related priorities that the NAIC is already working on include a complete overhaul to an older model law and model regulation that set minimum standards for state regulation of excepted benefit policies (the Accident and Sickness Insurance Minimum Standards Model Act and Regulation #170 and #171). They also just released the first part draft update to the Employee Retirement Income Security Act (ERISA) Handbook used by state insurance department staff and are seeking comments on the proposed changes. The Medical Loss Ratio Quality Initiatives Subgroup is considering what recommendation it will make to the federal Department of Health and Human Services (HHS), and the Health Reform Regulatory Alternatives Working Group is gathering more information about the new special enrollment period verification process under development by the federal Centers for Medicare and Medicaid Services (CMS). NAHU continues to provide input and gather information from regulators on all of these and other related issues.

Beyond matters being addressed under the umbrella of the Health Insurance and Managed Care (B) Committee, some of the other significant topics considered by the NAIC during the recent meeting include the development of a model law on cybersecurity protections, potential revisions to financial privacy disclosure requirements to allow for electronic distribution, and a public hearing on the use of data collection as it relates to insurance policies.

The NAIC recently exposed its first draft of a cybersecurity model for public comment and this model law was the subject of discussion at several committee meetings. NAHU and industry coalition partners agree with state regulators on the need for a cohesive national cybersecurity standard and feel that the development of a robust model that takes into account the views of all stakeholders would be the most appropriate course of action. Unfortunately, NAHU and coalition partners have concerns about the scope and direction of the first draft of the model and are calling on the NAIC for additional discussion and opportunities to suggest changes and provide productive input. Otherwise, our concern is that the model will not be well received when it eventually gets to the states. 

Over the next few months, NAHU will continue to monitor the proceedings of the NAIC through conference calls, written comments and coordination with coalition partners. The next meeting of the organization will be August 26-29, 2016.