Academy Activities

Several of the Academy’s long-term care (LTC) work groups provided updates on various projects to the National Association of Insurance Commissioners’ (NAIC) Long-Term Care Actuarial Working Group during its meeting in Louisville, Ky.:

• The Long-Term Care Terminations Work Group provided an update on progress made in developing a recommendation on LTC terminations and next steps.
• The Long-Term Care Principle-based Reserves Work Group presented a status update as it works to develop a principle-based approach model and a timeline for project completion.
• The Long-Term Care Credibility Monograph Work Group provided an update on its monograph addressing LTC credibility issues.

On Aug. 29, the Academy’s Joint Committee on Retiree Health sent a letter to the Governmental Accounting Standards Board commenting on proposed statements of accounting and financial reporting by governmental employers for other postemployment benefits (OPEBs).

Legislative/Regulatory Updates

On Sept. 5, 2014, the Centers for Medicare & Medicaid Services (CMS) published a final rule specifying options for annual eligibility redeterminations and renewal/re-enrollment notice requirements for qualified health plans offered through the exchange. The final rule applies to annual redeterminations for the 2015 benefit year. The rule is effective Oct. 6.

The Internal Revenue Service (IRS), the Employee Benefits Security Administration, and CMS issued two related rules on Aug. 27 addressing religious exemptions to the provision of contraceptive devices. The first rule seeks to change the definition of “eligible organization” in relation to the exemption from coverage of contraceptive devices. Comments on the proposed rule are due by Oct. 21. The second rule  provides an alternative process that an eligible organization may use to provide notice of its religious objections to providing contraceptive coverage, while preserving participants' and beneficiaries' access to coverage for the full range of Food and Drug Administration-approved contraceptives, as prescribed by a health care provider, without cost sharing. Comments on the interim final rule are due by Oct. 27.

From Aug. 16 to 19, the NAIC held its Summer 2014 National Meeting in Louisville, Ky. The Joint Executive Committee and Plenary adopted amendments to the Long-Term Care Insurance Model Regulation. The amendments require issuers of long-term care insurance (LTCI) to give more justification from actuaries for initial rates and for proposed rate increases. The amendments also state that an insurer subject to the regulation changes would be required to have a member of the Academy certify each year that the rates for currently marketed LTCI products were sufficient to cover anticipated costs under moderately adverse conditions.

In the News/Media Activities

The Health Practice International Task Force’s new issue brief, “Curbing the High Cost of Diabetes,” received coverage in the widely read D.C. media outlet Politico. The brief provides a perspective on the increase of diabetes prevalence and diabetes-related health spending internationally.

A Mondaq story reporting on the NAIC’s recent model regulation amendment calling for increased actuarial analysis of LTC rates noted that “[t]he expanded requirements for the actuarial certification and a supporting memorandum signed by a member of the American Academy of Actuaries include requirements of discussion of margin for foreseeable adverse experience and the calculation of reserves to be held.” NAIC adopted the amendment at its Summer 2014 National Meeting.

The Academy was featured in LifeHealthPro’s coverage of LTC issues at the NAIC Summer 2014 National Meeting. LifeHealthPro reported on an Academy presentation on models of principles-based reserving (PBR) for LTCI providers. Its coverage of changes to the NAIC’s LTCI Model Regulation noted that, every year, an insurer subject to the regulation changes would have to get certification by a member of the Academy.

Senior Health Fellow Cori Uccello’s comments regarding the reduction in the Affordable Care Act’s (ACA) transitional reinsurance program from 2014 to 2015 were cited in a Covering Health blog posting. Uccello represented the Academy in the June 27 Capitol Hill panel discussion, “Rates of Change: Putting 2015 Insurance Premiums into Context,” hosted by the Alliance for Health Reform and The Commonwealth Fund. Watch a video of the panel discussion here.

Upcoming Events

Measuring Health Insurance Coverage: Improvements and New Opportunities in the Current Population Survey
Briefing: Sept. 17, 1:00 p.m.–2:30 p.m. EDT
Sponsor: AcademyHealth (no fee charged)

Reforming Medicare: What Does the Public Think?
Briefing: Sept. 19, 9:15 a.m.–11:00 a.m. EDT
Sponsor: Brookings Institution and American Enterprise Institute (no fee charged)

2014 Life and Health Qualifications Seminar
When: Nov. 10–13, 2014
Where: Key Bridge Marriot, Arlington, Va.

For a complete listing of upcoming and recent health care reform events, click here.