SIIA Defends ERISA Preemption to NCOIL Panel

SIIA defends ERISA preemption to NCOIL panel:  SIIA lobbyists warned the National Conference of Insurance Legislators (NCOIL) Health Committee that restrictive language under consideration for a model law for states to regulate PPO “rental networks” would be a clear violation of ERISA and open the possibility of lawsuits against states adopting the law.  Some providers clamored for regulation of “silent PPOs” which are formed when a PPO sells or rents negotiated discounts to non-related third parties such as TPAs.  The TPAs are then able to utilize discounts in providing administrative services to their clients. In a debate with American Medical Association lawyers who also testified we clarified the original intent of Congress to preempt states’ tampering with employer health plans organized under ERISA.  SIIA also issued a letter summarizing our position to participating state legislators and will match up legislators’ locations for grassroots appeals by SIIA members. The final proposed language of the model law could be released by NCOIL today and SIIA will communicate it to members.