ACLI Files Notice Of Appeal On D.C. Health Exchange Funding Decision

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Dec 15, 2014, 12:43 ET

WASHINGTON, Dec. 15, 2014 /PRNewswire-USNewswire/ -- The American Council of Life Insurers (ACLI), a Washington, D.C.-based trade association, has filed a notice of appeal to a lower court's decision dismissing ACLI's original complaint against the District of Columbia. ACLI maintains that action taken by the District of Columbia to cover operating costs for its health insurance exchange violates the Affordable Care Act and is unconstitutional. The District of Columbia Health Exchange Authority has assessed user fees on supplemental insurance products that are prohibited from being sold on the exchange. This includes long-term care insurance, disability income insurance, vision insurance and other supplemental products.

"We respectfully disagree with the ruling by the U.S. District Court for the District of Columbia," said ACLI Executive Vice President and General Counsel Gary Hughes. "Under the Affordable Care Act, the D.C. Health Exchange Authority can only assess qualified health plans under its jurisdiction to fund the exchange. Supplemental benefits do not fall under this definition.

"To be clear, ACLI does not have a position on the Affordable Care Act. Our concerns are only in regard to how D.C. has chosen to fund its own exchange," Hughes said.

"Because these products are prohibited from even being sold on the exchange, the assessments amount to a user fee on non-users. In addition, the cost of the assessments will likely and unfairly impact the affordability of these products for consumers in the District of Columbia," Hughes said.

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SOURCE American Council of Life Insurers