WASHINGTON (Dec. 19, 2019) — The NAIC applauds work by Congress in acting on several NAIC priorities in its end-of-year package.
Some of the highlights include:
- A 7-year reauthorization of the Terrorism Risk Insurance Act (TRIA) through Dec 31, 2027 that helps ensure the availability of terrorism risk insurance.
- An extension of The National Flood Insurance Program (NFIP) which provides flood insurance coverage for millions of Americans, until Sept. 30, 2020; however, a long-term reauthorization remains critical for policyholders.
- The health insurance tax (HIT) was repealed. The tax will still be collected for 2020 but will be repealed for plan years beginning after December 31, 2020. This tax was projected to raise premium by more than 2%.
- The repeal of the "Cadillac” tax eliminates a 40% excise levy on high-cost health plans, meant to curb high employer plan spending.
- Provisions that require auto-reenrollment for consumers at the end of a plan year and prohibit the Secretary from banning or limiting the practice of "silver loading" – which is when insurers raise ACA premiums for Silver plans to recoup required cost-sharing subsidies. Both of these provisions are effective for just the 2021 plan year.
- The funding of community health centers (CHCs) through May 22, 2020. The bill provides $1.63 billion for CHCs.
- Increased funding for State Health Insurance Assistance Programs (SHIPs). The program provides free assistance to seniors. The funding will be $52.1 million; a 6% increase and the first increase in several years.
- The NAIC supported the Setting Every Community Up for Retirement Enhancement (SECURE) Act; which, makes it easier for Americans to plan for retirement by expanding access to annuities and requiring new disclosures regarding lifetime income.