Sep 21, 2017

CID insurance commissioner weighs in on health-care fixes

The search for a bipartisan solution to issues with the Patient Protection and Affordable Care Act continues with the Senate Health, Education, Labor and Pensions committee hosting several meetings spanning August and September. To assist these discussions, Connecticut Insurance Department Insurance Commissioner Katharine L. Wade submitted a letter to the committee to ask Congress to consider several recommendations to improve the stability of the individual market.

Commissioner Wade first addressed cost-sharing reduction payments, and encouraged the Legislature to take action to ensure that these payments continue at least through the end of 2018. She noted that the payments are an important relief to consumers who pay out-of-pocket costs to carriers, and ensuring their continuance allows for the carriers to factor them into their decisions regarding market participation. The commissioner also recommended implementing a reinsurance program with permanent funding. This would allow companies to offset the cost of high-cost claims and lower premiums.

Along with a reinsurance program, the commissioner also recommended permitting more flexibility in plan designs to encourage more individuals from more demographics to enroll in an insurance plan that best addresses their needs. Wade recommended creating a "copper" plan to be offered in addition to the current "gold," "silver" and "bronze" plans. The new plan would provide the essential health benefits as the other plans, but have fewer or no additional benefits and carry higher copayments and deductibles. Wade also recommended that flexibility be returned to the states on rating standards.

Commissioner Wade also recommended that Congress continue a moratorium on the PPACA’s health-insurance tax and supported increased transparency of the quality and cost of care in an effort to lower the cost of health-care over time.