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About a month ago from ISAHU's Twitter via CoSchedule

Our Meeting With the New IDOI Commissioner

On Wednesday October 6, 2021 I met with our new commissioner of the Department of Insurance, Amy Beard. While I was waiting in a conference room, Becky Vaughn, Director of the Indiana Long Term Care Insurance Program & a member of IAHU & ISAHU & NAHU entered. Becky walked in with a smile on her face & we had a very nice visit before any others joined the meeting. One by one members of the executive team walked into the conference room. There was laughter & smiles as the executive team entered the conference room. The last to enter the conference room was Commissioner Amy Beard. She previously was General Counsel & Chief Deputy Commissioner under the prior commissioner. The new commissioner & I had a relationship from her prior role at the IDOI.

I was honored they met with me, and I thanked her & her staff for taking the time to meet. Her Executive team comprised of Holly Williams, Chief of Staff, Megan Brumbaugh, General Counsel, Alexandria (Alex) Peck, Chief Deputy Commissioner, Roy Eft, Chief Financial Examiner, Scott Shover, Chief Actuary, and Becky Vaughn, Director of Indiana Long Term Care Insurance Program

I told the new commissioner that I appreciated the department’s assistance with HB 1405, CE rollover credit. This becomes effective 01/01/2022. I asked her how the department is going to administer this new provision to CE. The Department is going to communicate with SIRCON to see how they are going to administer this. I was looking to determine how a producer submits the excess credit hours to either SIRCON or the Department of Insurance? Hopefully, we will be informed soon.

The next issue that I brought up was the status of the Indiana Partnership (long term care). I was informed that FSSA is communicating with FSSA regarding the possibility of Indiana moving away from the Indiana Partnership & to a DRA Model & if this occurs, will the Feds still match to the Medicaid recipient (under the current arrangement, the Feds contribute 60% to 70% & the State of Indiana contributes 40% to 30% to the Medicaid recipient. There is concern that if Indiana moves to the DRA Model, the Feds will no longer contribute to the Indiana Medicaid Recipient. This will create a large unfunded Liability for the State of Indiana. This is on hold until CMS communicates with FSSA. FSSA will communicate with the IDOI.

Lastly, I brought up the issue of commissions on Medicare supplements in the state of Indiana. In Indiana, Medicare Supplements pay commissions for six years & then pay nothing. Medicare Advantage Plans pay a lifetime commission. In the states of Michigan, Ohio, Kentucky & Illinois, Medicare supplements pay a lifetime commission. Our members that sell Medicare supplements should be paid as they are in Michigan, Ohio, Kentucky & Illinois. I shared with the commissioner that in the past the insurance companies have said that the IDOI made that call. The IDOI has said that it is the insurance companies that made that call.

The general counsel stated that IDOI follows the NAIC model (pay a minimum of at least 6 years). It could be more, just not less. I explained that the need for an agent’s help beyond 6 years would be more relevant, as the Medicare beneficiary ages beyond age 65 is most likely going to have more claims, not less. Also, we don’t want agents churning Medicare supplement policies to earn commission beyond the 6 years. The commissioner agreed. I asked her if the IDOI would meet with us & representatives from Anthem & UHC to see what we can get accomplished. We want to make sure that by extending commissions, our members don’t earn less. At this point we don’t know if this needs to be done legislatively, or by regulation. We will figure it out with the IDOI. I am also going to have a conversation with representative Carbaugh, Chairman of the House Insurance Committee.

The good news is that we have re-established a relationship with the commissioner & the IDOI!

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Indiana State Association of Health Underwriters

Indiana State Association of Health Underwriters