The NAIC Makes Progress on Health Insurance-Related Model Acts

Insurance Law Alert

December 18, 2017

Cynthia J. Borrelli

Cynthia J. Borrelli



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The National Association of Insurance Commissioners held its winter 2017 meeting December 1-4.  During that meeting, the NAIC made progress on a draft model law (linked here), which addresses health insurance carriers’ prescription drug benefit practices through its committee process.  The proposal is pending final approval by the NAIC in plenary session.  Priorities for 2018 were also identified by state regulators.  These include potential state-level regulation of Association Health Plans and a pending revision of a model law and regulation that states could use to set minimum standard requirements for a wide range of excepted benefit policies.  Regulators are also working towards a substantial update to the ERISA handbook for state regulators, changes to the long-term care shoppers guide and a model law on short duration long-term care insurance policies.  The NAIC is also closely monitoring pending federal regulations relative to HRAs and short-term major medical coverage, as well as potential changes to the federally facilitated health insurance exchange.  Potential model act and state-specific statutory changes to the individual mandate and individual market stability supports, as well as implementation strategies to ease the impact on consumers and small business constituents, were also discussed by NAIC participants.

During the meeting, The National Insurance Producer Registry (NIPR) Board approved a new licensing and services agreement with the NAIC so that NIPR can access the NAIC producer licensing related data, as well as compensate the NAIC for services provided to NIPR.  The new arrangement holds the percentage of NIPR gross revenues paid to the NAIC at the current level of 38% and provides for additional NAIC service support to the NIPR, all of which should have a positive effect on health insurance agents and brokers who use NIPR for their licensing needs.