NCOIL Passes Resolution to Amend ERISA
* * *
- Recognizes that State Policymakers Need Greater Flexibility in State Healthcare Policy Decisions
* * *
"As Chair of the
"The goal of ERISA when signed into law by President
At the 2018 NCOIL Annual Meeting in
"As stated in the resolution, we urge members of
A copy of the resolution is below and it will be sent to the members of the
WHEREAS, the Employee Retirement Income Security Act of 1974, 29 U.S.C. *
WHEREAS, the
- ERISA preempts "any and all" state laws that "relate to" an employee benefit plan;
- ERISA does not preempt state laws that regulate insurance;
- Self-insured employee benefit plans are not considered insurance under ERISA, therefore;
- ERISA preempts "any and all" state laws that "relate to" an employee benefit plan provided by a self-insured employer; and
WHEREAS, although federal law typically displaces conflicting state law in cases where compliance with state law would make compliance with the federal law impossible, ERISA goes further, broadly preempting "any and all" state laws that "relate to" a self-insured employee benefit plan, regardless of whether such laws conflict with existing federal laws; and
WHEREAS, courts' broad interpretations of whether a state law "relates to" a self-insured employee benefit plan has put such plans essentially beyond the reach of most state health regulations, including those that seek to mandate health benefits, increase health insurance coverage, control healthcare costs, and gather information about healthcare prices and quality; and
WHEREAS, more than 60 percent of all workers with private, employer-based health insurance are in self-funded employee benefit plans; and
WHEREAS, ERISA has grown far beyond its original intent of establishing uniform federal standards to protect private employee pension plans from fraud and mismanagement, and has transformed into a critical barrier for states seeking to enact meaningful healthcare reforms; and
WHEREAS, in order to ensure that states continue serving their role as sources of healthcare innovation in the most meaningful way, federal action is needed to amend ERISA; and
WHEREAS, ERISA - unlike most federal healthcare statutes such as Medicaid, Medicare, and the Affordable Care Act (ACA) - does not contain waiver provisions that enable states to pursue policy experiments consistent with the states' role as "laboratories of democracy"; and
WHEREAS, statutory waivers can provide states flexibility to work within a federal statutory scheme and mitigate unintended consequences of federal laws; and
WHEREAS, amending ERISA to add a statutory waiver provision that would allow states to apply to the
WHEREAS, NCOIL recognizes that states can and do enact meaningful healthcare reforms, but such reforms would be much more meaningful if applicable to all of a state's privately insured citizens; and
WHEREAS, NOW, THEREFORE, BE IT RESOLVED, that NCOIL urges members of
BE IT FINALLY RESOLVED, that a copy of this Resolution be sent to the members of the
NCOIL is a national legislative organization with the nation's 50 states as members, represented principally by legislators serving on their states' insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy four years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.
25 Charged In Western Pa. Insurance Fraud Sweep
African Development Bank Announces US$100 Million Comprehensive Relief, Reconstruction and Mitigation Plan for Mozambique, Malawi and Zimbabwe
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News