NAIC releases draft insurance exchange regulation

The National Association of Insurance Commissioners on Wednesday released a 10-page draft bill for the state health insurance exchanges mandated by the healthcare reform law.

The document could become the basis for exchange legislation that states will start considering in 2011 and 2012, according to Ipsita Smolinski of the consulting firm Capitol Street. 

The law requires the Health and Human Services Department determine by Jan. 1, 2013, whether states will have exchanges ready in 2014; the department will take over in states that won't.

The regulation is offered as an "issue paper for state consideration." Comments are due by Oct. 6. States have also asked for HHS to provide guidance by the end of the year.

Some of the questions raised by the document include: 

  • Whether to merge the individual and small-group exchanges;
  • Whether the exchange or the state insurance commissioner should determine unjustified rate increases;
  • How to define the small-group market (50 or 100 employees).