National Association Insurance Commissioners (NAIC) president Monica Lindeen has testified before US Congress support of the Protecting Affordable Coverage for Employees (PACE) Act.
The hearing was held on 9 September by the US House of Representatives. The PACE Act would let states define “small group” for the purposes of health insurance.
The Affordable Care Act changed the definition of “small group” from an employer with 1 to 50 employees to one with 1 to 1,000.
This change would subject mid-sized employers to new rating restriction and benefit requirements. The changes could increase costs to employers, limit flexibility and drive up premium costs for employers, according to the NAIC.
The PACE Act will give states the opportunity to define “small group” in a manner consistent with their state’s demographic needs.
Lindeen, who is also Montana insurance commissioner, testified: “The NAIC has endorsed the PACE Act because it would retain state flexibility to set the appropriate limits for the small group health insurance market and ensure stable small group markets that reflect the unique characteristics and dynamics at play in each of the states.”
Lindeen added: “States don’t always agree, and on an issue as controversial as health reform, that is certainly true.”
“What may work in Washington may not be right for Montana, which is why giving states options when it comes to federal rules is critical.”
