Bill would create oversight for insurance exchange

The Banking, Commerce and Insurance Committee heard testimony Feb. 19 on a bill intended to create state-based oversight for Nebraska’s health insurance exchange.

Under the federal Patient Protection and Affordable Care Act, Nebraska is required to have an operational health insurance exchange by Jan. 1, 2014. Nebraska will have a federally facilitated exchange.

LB384, introduced by Omaha Sen. Jeremy Nordquist, would create the Nebraska Exchange Stakeholder Commission. Nordquist said the bill would provide the state a group of stakeholders willing to work with the federal government to ensure a smooth transition to the new system.

Under the bill, the commission would:
• work with state and federal agencies and policymakers to provide oversight and recommendations regarding implementation and operation of the exchange;
• create technical and advisory groups as needed to discuss issues regarding the exchange and to make recommendations to the commission, state or federal agencies and the Legislature;
• assist the exchange in meeting the stakeholder consultation requirements as provided in federal regulations; and
• identify challenges and problems in the implementation and operation of the exchange and prepare recommendations to alleviate the problems identified.

The commission would report to the Legislature by Dec. 1, 2013.

The commission’s 12 members would include:
• health care consumer advocates;
• small business representatives;
• health care providers;
• health insurance carriers and agents;
• a member of Rural Health Advisory Commission; and
• representatives of the state departments of insurance and health and human services.

Members – appointed by the governor and approved by the Legislature – would serve four-year terms.

Testifying on behalf of AARP Nebraska, Mark Intermill supported the bill, saying the commission would provide Nebraskans a forum for participating in the process.

“There is a chance that the Affordable Care Act could be implemented in Nebraska without a hitch,” he said, but added that issues are likely to arise which Nebraska stakeholders should have a voice in resolving.

Rebecca Rayman, chairperson of the Health Center Association of Nebraska, also supported the bill. She said many of the people who will be using the health exchange will be first time purchasers of health insurance and their interests should be protected.

Director of Insurance Bruce Ramge testified in a neutral capacity, saying the department is committed to transparency throughout the process of implementing the exchange.

“We’re working with our federal counterparts to make this transition as smooth as possible,” Ramge said.

The committee took no immediate action on the bill.