<nobr>Oct 6, 2010</nobr>

ERIC Urges Flexibility in Operation of State-Level Exchanges Under PPACA

ERIC on October 4 submitted comments in response to a "request for comments" on the planning and establishment of state-level exchanges and related provisions under the Patient Protection and Affordable Care Act (PPACA).

The PPACA provided for the system of exchanges to expand access to health insurance, initially for individuals and small employers. The exchanges, which are intended to be operational in 2014, will be primarily established and operated by the states; the federal government is authorized to operate the exchanges in states that choose not to participate. Starting in 2017, states may elect to allow issuers of health insurance coverage in the large group market to offer qualified health plans (QHPs) through the exchanges and to permit large employers to purchase coverage through the exchanges.

The request for comments was published in the Federal Register on August 3, 2010, and included several questions to employers concerning their participation in the exchanges.

ERIC's letter noted the strong interest of employers in how effectively the exchanges manage their health-care coverage operations and the impact of expected significant changes and developments in the areas of health-care cost containment, quality, transparency, delivery, payment reform, wellness and prevention efforts, and the adoption of health information technology. ERIC addressed overarching principles that will be of significant importance to the effective and efficient establishment and operation of the exchanges in a way that does not impinge on employer-plan administration and costs.

Noting that large employers currently are responsible for providing health insurance to 170 million workers and their families, and provide health coverage to almost 60% of the nation's population, ERIC strongly urges that large employers should be represented on any significant committees or advisory panels that will make major decisions or recommendations concerning the activities of the exchanges.

In addition, ERIC urged that rules and procedures regarding the interface between the exchanges and large employers concerning payments, disclosures, reports, and communications regarding employee subsidies, vouchers, and similar matters should be uniformly and nationally applicable to all exchanges. The letter explains that national uniformity of exchange rules is of paramount importance to large, multi-state employers for the same reasons that led to the establishment of ERISA preemption in 1974.

The letter also emphasizes the need for according large employers maximum flexibility in their interactions with the exchanges, and that the accommodation of existing employer practices should govern such matters as billing, disclosures, reports, open enrollment periods, and correction of non-material errors. Moreover, ERIC recommends that the administration of the exchanges should not operate so as to impinge on the administration of employer plans outside the exchanges.

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For more information:
Ted Godbout
Director, Communications
The ERISA Industry Committee
1400 L Street, NW, Suite 350
Washington, DC 20005
Phone: (202) 789-1400
Fax: (202) 789-1120
tgodbout@eric.org
www.eric.org

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The ERISA Industry Committee (ERIC) is a non-profit association committed to representing the advancement of the employee retirement, health, and compensation plans of America's largest employers. ERIC's members provide benchmark retirement, health care coverage, compensation, and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.

Websites:

ERIC Comment Letter

HHS Request for Comments

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