The NAIC Model
Law Review Initiative (B) Subgroup met last week to review several
Model Acts for compliance with the NAIC’s Procedures for Model Law
Development. The Subgroup is charged with recommending whether each of
the Model Acts should be retained as model law, amended, converted to a
guideline or archived. In its call this week, the Subgroup voted to
retain the Discount Medical Plan Organization Model Act (2006) and agreed that revisions should be considered in the future.
discussion, some Commissioners and representatives noted that when the
Discount Model was developed, there was controversy on some points,
which led to the inclusion of various options states could take in
adoption. The availability of such options could mean the Model is
better suited as less formal Guidelines for states. Also, there was
question of whether the problems leading to the creation of this Model
in 2006 are as prevalent today.
representative suggested the Act should be retained as an NAIC Model
because it is implemented in Nebraska and has been helpful in
delineating Discount plans from insurance. Providers and hospital groups
are beginning to create plans, and while these may be free, as the
programs develop, they could become more like Discount plans. Wisconsin
and Colorado representatives also supported retention as a Model.
Consumer representatives also supported the retention of this as a Model
Act as it is still an important issue for consumers (as evidence by a recent settlement in
MA) and national uniformity can be a good thing. One group asked NAIC
to review and amend its count of the number of states that have adopted
the Model. Some argued the count is too low. NADP had forwarded it’s
state count to NAIC several months ago.
voted to retain the language as an NAIC Model Act and agreed that
revisions could be considered in the distant future, potentially years
from now after more pressing Models are reviewed.
attached Brief prepared by the Government Relations Workgroup (GRW) for
more background on the discount dental market and the NAIC Model Act.
Review the GR Grid for
a specific spreadsheet on state-level adoption of the Model Act. NADP
will continue to monitor NAIC activity on discount plans and update
members in this forum.