Does The Health Insurance Industry Need a Federal Insurance Commissioner?

Does The Health Insurance Industry Need a Federal Insurance Commissioner? in Politics and Legislation

In a new health reform debate topic, members of U.S. Congress are now considering the creation of a federal insurance commissioner to oversee health insurance plans across the entire country, reported the Associated Press and the Chicago Tribune.

The new insurance commissioner would head a new government agency called the Health Choices Administration. This administration would run a regulated insurance exchange where consumers could choose from private plans and a government-controlled option.

It would also dictate plan benefits and keep an eye on marketing campaigns run by insurance companies.

So, what are the arguments for and against?

Critics of a federal commissioner and agency say it’s just an attempt to give the federal government more power, which is a predictable argument from the right.

But the left isn’t letting the idea off easy either. Kim Holland, the insurance commissioner in Oklahoma, says the federal office wouldn’t provide enough protections for consumers. Holland, a Democrat, also pointed out the feds would duplicate functions that state commissioners already perform.

On the other hand, supporters of the idea argue the states sometimes don’t do enough.

“We need a better health care cop on the beat. There needs to be a federal insurance commissioner to keep insurers on the straight and narrow,” said one policy analyst.

Further, a federal commissioner would be necessary if there is a federal health insurance exchange.

“If we’re going to have a national insurance exchange, you can’t have it run by 50 regulators in the states,” added the analyst.

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