National Conference of State Legislatures
The Forum for America's Ideas
March 14, 2006
The Honorable Michael B. Enzi
Chairman
Committee on Health, Education, Labor & Pensions
United States Senate
Washington, D.C. 20510
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The Honorable Edward M. Kennedy
Ranking Member
Committee on Health, Education, Labor & Pensions
United States Senate
Washington, D.C. 20510
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Steven Rauschenberger
Assistant Senate Republican Leader
Illinois
President, NCSL
Susan Clarke Schaar
Clerk of the Senate
Virginia
Staff Chair, NCSL
William T. Pound
Executive Director |
Dear Chairman Enzi and Senator Kennedy:
Maintaining the integrity of the small group market and expanding access to affordable, quality, comprehensive coverage to small employers, the backbone to our economy, is very important to the National Conference of State Legislatures (NCSL). It is equally important that states continue to regulate these products and to protect their constituents who use these products. We have vigorously opposed federal legislation that would preempt state laws regulating this market or that would shift the regulation to a federal agency.
The legislation under consideration in the committee, S. 1955, the Health Insurance Marketplace Modernization and Affordability Act of 2006, makes an effort to accommodate our concerns. It retains state regulation and truly attempts to expand the coverage options available to small employers. Yet, the preemption of state rating laws is troubling, particularly for states that have moved more aggressively towards community rating.
We are also concerned about the broad preemption of state mandated benefits. The new provision establishing the standard for benefit offerings is an improvement over the previous provision that established a 45 state threshold for the inclusion of a benefit mandate. Yet we believe it still falls short. We are concerned that the required offerings may not provide suitable options for affordable, comprehensive coverage for low wage employees.
NCSL appreciates the work of this committee and particularly appreciates the leadership of the Chairman in addressing state concerns. We look forward to a continuing dialogue as this legislation works its way through the legislative process and we appreciate the inclusion of state legislators on the Health Insurance Consensus Standards Board. NCSL will be happy to assist in the identification of state legislators in this endeavor. We welcome the opportunity to work with you and this national priority.
Sincerely,
Carl Tubbesing
Deputy Executive Director
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