State Regulators Concerned About Authority To Enforce HC Law

NU Online News Service, Aug. 16, 3:41 p.m. EDT

As regulators discuss implementing the new health care law at the National Association of Insurance Commissioners (NAIC) Summer National Meeting in Seattle, some commissioners are concerned about their authority to enforce consumer protections, according to The New York Times.

In an Aug. 14 story, the Times said insurance commissioners "in about half the states say they do not have clear authority to enforce consumer protection standards that take effect next month."

Without the proper authority, the Times notes, "the ability of consumers to secure the benefits of the new law could vary widely, depending on where they live."

The story adds that regulators are taking different approaches to correct the issue, from asking state legislators to expand their authority to relying on "their powers of persuasion, the good will of insurers, or general state laws that ban unfair or deceptive trade practices."

If a state fails to enforce new federal standards in the law, the federal government will step in to do so, according to the Times.

"Under the new federal standards," the story explains, "insurers generally must offer coverage to children under 19 and must allow adult children up to age 26 to stay on their parents' policies. Insurers cannot charge co-payments for preventive services or impose a lifetime limit on benefits; must allow consumers to appeal a denial of benefits; and cannot rescind coverage, except in cases of fraud or intentional misrepresentation."

Much more, including a list of the states that believe they may have issues and possible solutions they are exploring, is available in the Times story, "Some States Are Lacking in Health Law Authority."