FLASH- Baucus Bill Creates NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, Gives Broad, Ill-Defined Powers Over ALL Aspects of Health Care
Page 12 Grandfathered Plans – they will allow people who already are covered under plans to renew them as long as they offer coverage equal in value to the “young invincible” plan. Last sentence on page 12 says no tax credits would be given to grandfathered plans. Who gets tax credits now for health insurance. It sounds like one way to get people off of their current plans and into the government plan.
Page 13 – Federal rating rules (don’t know what that is) will be phased in for these grandfathered policies over 5 years beginning 07/01/2013.
Page 13 Interstate Sale of Insurance – by 2013 the National Association of Insurance Commissioners will develop rules to create “health care choice compacts”. By 2015 states will have formed these compacts to allow individual health insurance to be purchased across state lines. Insurers would not have to be licensed in the state but would be subject to the regulations of the state where policy issued.
Page 13 & 14 National Plans
National Plans with uniform benefits would be offered across state lines. They must be licensed in every state and would operate through “state exchanges”. It permits states to opt-out. These national plans would have to offer silver and gold benefit levels. Seems to give alot of power to the National Association of Insurance Commissioners (NAIC). (who are they???) While the plans have to be uniform in every state in which they operate, the rates will reflect geographic variation.
Page 14 – Rules Regarding State Opt-Out
In 2015 states can apply for a waiver to opt out of certain aspects of the Act. The Secretary (Health and Human Services I guess) will determine if a waiver will be accepted. In order to be able to opt-out the state must “meet the requirements of this Act such as all residents have affordable, quality insurance coverage”. (I want to know who defines affordable and quality??)
Last part of page 14 says that states must get “citizen input through a referenda or similar means” in order to opt-out and that the state plan “will ensure that all residents have coverage”.
(That seems to make it impossible for any state to opt out of the federal plan because the federal plan is not even ensuring that all people will have coverage. They make it sound like there are options when in reality they make it impossible.)