BCBSAZ just sent an alert to agents about Arizona's proposed legislation for selling out-of-state insurance inside AZ. It brings up issues that are more than just the fact that those insurers don't have to comply with AZ mandates. The issues that BCBSAZ brings up are valid concerns.
Action Alert to All BCBSAZ Brokers Regarding SB 1593
[FONT="]We want to alert you to a troublesome bill at the Arizona state legislature. SB 1593 allows out-of-state insurance companies to do business in Arizona without bothering to obtain a certificate of authority and without being subject to any benefit mandates and most administrative requirements. The bill creates two classes of health insurers: Fully regulated and barely regulated.[/FONT]
[FONT="]We urge you to contact lawmakers and [/FONT][FONT="]tell them to vote no on SB 1593.[/FONT][FONT="]Click this[/FONT][FONT="] link to the House roster with contact information for each House member.[/FONT]
[FONT="]We certainly understand the motivation behind the bill. Its advocates argue there are too many insurance mandates and they cost too much money. In fact, we agree.[/FONT]
[FONT="]But if that's the case, we believe the better course is to repeal or modify some of the mandates. It simply does not make sense to punish existing insurers by subjecting them to benefit mandates and the rest of the licensing and regulatory requirements while exempting newcomer insurers that have no connection to the state and may have solvency or market conduct issues.[/FONT]
[FONT="]Under this bill, The Arizona Department of Insurance will not know when an out-of-state carrier is in financial trouble. Arizona consumers and providers will have no protection when the carrier becomes insolvent. In addition, a long list of administrative requirements such as network adequacy, timely claims payment, privacy protection and small group rate regulation will not apply.[/FONT]
[FONT="]The bill's advocates give the impression that the out-of-state insurer's home-state regulator will have jurisdiction over policies issued in Arizona. That is not the case. Instead, the bill leavesArizona consumers in a no-man's land if they have problems with their coverage.[/FONT]
[FONT="]We welcome competition in the marketplace, but competition must occur on a level playing field. This bill tilts the field in favor of out-of-state insurers who are not accountable to Arizonans.[/FONT]
[FONT="]The state requires barbers and beauticians to have a license to cut hair. Arizonans deserve at least that much oversight and protection when they buy insurance products. They expect regulatory protections to ensure these companies will be here to pay claims, not just collect premiums. Insurance producers and carriers who are trying to do the right thing will have to contend with these out-of-state carriers selling on the Internet, focusing on price alone and disappearing when there is a problem.[/FONT]
[FONT="]Again, we urge you to contact lawmakers and educate them on the importance of solvency and ensuring fair competition between Arizona and out-of-state insurers. Tell them to vote no on SB 1593.[/FONT]
[FONT="]SB 1593 is moving through the House right now. Click this link to the House roster with contact information for each House member.[/FONT]
[FONT="]BCBSAZ appreciates your help.[/FONT]
Action Alert to All BCBSAZ Brokers Regarding SB 1593
[FONT="]We want to alert you to a troublesome bill at the Arizona state legislature. SB 1593 allows out-of-state insurance companies to do business in Arizona without bothering to obtain a certificate of authority and without being subject to any benefit mandates and most administrative requirements. The bill creates two classes of health insurers: Fully regulated and barely regulated.[/FONT]
[FONT="]We urge you to contact lawmakers and [/FONT][FONT="]tell them to vote no on SB 1593.[/FONT][FONT="]Click this[/FONT][FONT="] link to the House roster with contact information for each House member.[/FONT]
[FONT="]We certainly understand the motivation behind the bill. Its advocates argue there are too many insurance mandates and they cost too much money. In fact, we agree.[/FONT]
[FONT="]But if that's the case, we believe the better course is to repeal or modify some of the mandates. It simply does not make sense to punish existing insurers by subjecting them to benefit mandates and the rest of the licensing and regulatory requirements while exempting newcomer insurers that have no connection to the state and may have solvency or market conduct issues.[/FONT]
[FONT="]Under this bill, The Arizona Department of Insurance will not know when an out-of-state carrier is in financial trouble. Arizona consumers and providers will have no protection when the carrier becomes insolvent. In addition, a long list of administrative requirements such as network adequacy, timely claims payment, privacy protection and small group rate regulation will not apply.[/FONT]
[FONT="]The bill's advocates give the impression that the out-of-state insurer's home-state regulator will have jurisdiction over policies issued in Arizona. That is not the case. Instead, the bill leavesArizona consumers in a no-man's land if they have problems with their coverage.[/FONT]
[FONT="]We welcome competition in the marketplace, but competition must occur on a level playing field. This bill tilts the field in favor of out-of-state insurers who are not accountable to Arizonans.[/FONT]
[FONT="]The state requires barbers and beauticians to have a license to cut hair. Arizonans deserve at least that much oversight and protection when they buy insurance products. They expect regulatory protections to ensure these companies will be here to pay claims, not just collect premiums. Insurance producers and carriers who are trying to do the right thing will have to contend with these out-of-state carriers selling on the Internet, focusing on price alone and disappearing when there is a problem.[/FONT]
[FONT="]Again, we urge you to contact lawmakers and educate them on the importance of solvency and ensuring fair competition between Arizona and out-of-state insurers. Tell them to vote no on SB 1593.[/FONT]
[FONT="]SB 1593 is moving through the House right now. Click this link to the House roster with contact information for each House member.[/FONT]
[FONT="]BCBSAZ appreciates your help.[/FONT]
