Regulators are starting to grapple with ideas about how to keep the new health insurance exchange distribution system from causing big new antiselection problems.
Exchanges Subgroup officials at the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., have posted a draft paper on addressing adverse selection concerns on their section of the NAIC’s website.
The federal Protection and Affordable Care Act (PPACA) is supposed to create the health insurance exchange system in 2014.
Republicans are trying to block implementation of the act.
If the health insurance exchange provision and related provisions take effect as written, the exchanges will help individuals, families and small groups buy commercial health coverage using new system of tax credits.
PPACA will require carriers to sell the coverage on a guaranteed-issued basis, without taking health status into account when they are setting prices.
PPACA will require many individuals to pay a tax penalty if they fail to own health coverage, but the cost of the penalty will be much less than the unsubsidized price of the health insurance, and critics say some consumers may simply wait until they know they have big medical bills to start paying for health coverage.