Feds will need to enforce ACA reforms in 4 states
By: Jason Millman
March 19, 2013 04:43 AM EDT - POLITICO
At least four states wonft enforce new sweeping insurance market
reforms rolling out next year with the health law — leaving federal health
officials in Washington to pick up the slack, yet another wrinkle in
Obamacare implementation.
Insurance regulation is a huge responsibility thatfs been closely
guarded by the states. Thatfs why the Obama administration and those
closely watching the rollout of Obamacare believe that even states that
have sworn off the lawfs coverage expansions will still enforce its new
measures — including new benefit mandates, cost-sharing guidelines and
rules on how insurers rate customers — to retain control over their health
insurance markets.
But the feds will be overseeing the health care law in Missouri,
Oklahoma, Texas and Wyoming after those states told HHS they couldnft or
wouldnft implement the new rules.
gWe are enforcing because Oklahoma notified c that it has not enacted
legislation to enforce or that it is otherwise not enforcing the
Affordable Care Act market reform provisions,h Gary Cohen, director of the
federal Center for Consumer Information and Insurance Oversight, wrote to
the Oklahoma Insurance Department on Friday. Officials in Missouri, Texas
and Wyoming received similar letters, an agency spokeswoman said.
The enforcement letters come a little more than a month after a
Commonwealth Fund report found just 11 states and Washington had started
to adjust state laws to prepare for seven major ACA insurance reforms
taking effect in 2014.
The Department of Health and Human Services, however, has downplayed
the issue. It says many state insurance commissioners have broad authority
to enforce federal laws — even if their states havenft given them explicit
direction on new ACA requirements.
Teresa Miller, who oversees implementation of the ACAfs insurance
reforms for CCIIO, last week said the feds have been in talks with states
that wonft enforce the law.
g[CCIIO] has been working to collaborate with those states and really
leverage state processes and resources to accomplish CMSfs direct
enforcement,h said Miller, a former Oregon insurance commissioner, on a
conference call hosted by the Commonwealth Fund.
John Doak, the insurance commissioner of Oklahoma — a deeply red state
thatfs still challenging Obamacare in federal court — told HHS in a letter
that he didnft have the legal authority to enforce federal law. And Doak
took the chance to remind federal officials of how unpopular the law is in
his state.
gIn 2010, State Question 756 received overwhelming support by voters of
an amendment to the Oklahoma Constitution prohibiting laws which compel
individuals, employers and providers to participate in health care
systems,h Doak reminded HHS.
© 2013 POLITICO LLC