D.C. Mandates Exchange-Based Small Business Health Plans

The Washington, D.C., City Council unanimously voted in favor of a mandate that all small business health plans in the district be purchased via its health insurance exchange, according to a report by the Washington Post.

The decision, which will not take effect until 2015, reflects what some consider a defensive effort by the council to counter the district's dominant health insurer's decision to sell fewer small group plans on the exchange and offer similar plans only outside the exchange. Critics say that could threaten the customer volumes needed for the exchange to successfully lower costs

Challenging the law's effectiveness is its October 2014 expiration date, when the bill will need to receive congressional approval to be made permanent. Passing the law now allows the law's provisions to be put in place so that it may pass congressional review next year, according to the report.

The council cut an amendment from the law that was passed that would have given the district's insurance commissioner authority to reject insurers' rate filings deemed excessive. Members preferred a full hearing on the proposed regulation before taking it to a vote.

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