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Federal health regulator rejects Idaho's bid to sell alternative ACA plans

Centers for Medicare and Medicaid Services Administrator Seema Verma warned a key Idaho insurance regulator that she would enforce the Affordable Care Act if he allows the sale of health plans that skirt ACA rules.

Verma wrote in a letter to Insurance Director Dean Cameron that while she "appreciates" the steps the state has taken to address the "damage" the ACA has wreaked on the individual market, it "remains the law and we have a duty to enforce and uphold the law."

Under orders from Idaho Republican Gov. C. L. "Butch" Otter, Cameron was directed to devise a proposal to allow insurers to offer plans that give consumers lesser coverage than the minimum set of benefits defined by the health law in an effort to bring the state's rising health insurance premiums under control.

The result was a proposal that allowed insurers to consider pre-existing conditions to underwrite plans, set annual benefit caps and limit coverage options — provisions that violate cornerstones of the health law.

Blue Cross of Idaho Care Plus Inc. was the first insurer to apply to sell five plans and has been awaiting approval from Cameron's office to market and sell the new products.

The company did not immediately respond to inquiries about Verma's letter to the department.

While Verma warned Cameron that her agency would intervene if he allowed the sale of plans that sidestep ACA rules, she suggested that the plans be transformed into short-term, limited duration plans that could be legally sold under the Public Health Service Act.

"I encourage you to continue to engage in a dialogue with my staff regarding this and other potential options," Verma wrote.