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ACLI blasts D.C. PPACA exchange assessment

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The American Council of Life Insurers (ACLI) is clashing with the board of the District of Columbia’s locally based exchange over an exchange funding proposal.

The District of Columbia Health Benefit Exchange Authority, the parent of the DC Health Link exchange, limits access to the exchange to sellers of major medical coverage and dental insurance.

Insurers cannot sell products such as disability insurance, long-term care insurance (LTC) or critical illness insurance through DC Health Link.

But the D.C. exchange board wants to pay for exchange operations with an insurer assessment that would be as broad as possible and could affect insurers that sell products other than major medical products that are classified as accident and sickness company products.

See also: Carriers pan D.C. exchange fee proposal

The board has developed a new regulation draft that calls for excluding liability insurance, Medicare Part D coverage and Federal Employees Dental and Vision Insurance Program coverage, but makes no direct mention of products such as disability insurance or LTCI. In the draft, the board classifies “excepted benefits” as “health insurance carrier risks” that would be part of the assessment program.

Joann Waiters, a regional vice president at the ACLI, says the ACLI has 237 members licensed to do business in the District of Columbia.

The ACLI has already gone to the court to try to keep the D.C. exchange imposing a broad assessment.

See also: D.C. exchange wins court battle

“We continue to strongly object to any legislation and/or regulation that authorizes the exchange to assess a fee on products such as disability income insurance, long-term care insurance and other supplemental products that are not sold on the D.C. exchange,” Waiters writes in a new letter commenting on assessment regulation draft. “This objection is based on both federal statutory and constitutional grounds.”