4901427 Resolution 20-471, “Health Benefit Exchange Authority Financial Sustainability Emergency Declaration Resolution of 2014”

A RESOLUTION

                                                        

20-471  

 

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

 

May 6, 2014

 

 

To declare the existence of an emergency with respect to the need to amend the Health Benefit Exchange Authority Establishment Act of 2011 to provide for the financial sustainability of the Health Benefit Exchange Authority.  

 

            RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Health Benefit Exchange Authority Financial Sustainability Emergency Declaration Resolution of 2014”.

 

Sec. 2. (a) Pursuant to section 17(b)(1) of the Health Benefit Exchange Authority Establishment Act of 2011, effective March 2, 2012 (D.C. Law 19-94; D.C. Official Code § 31-3171.16(b)(1))(“Act”),  the Health Benefit Exchange Authority (“Authority”) was required to “prepare a plan that identifies how the Authority will be financially self-sustaining by January 1, 2015.”

(b) Pursuant to section 17(b)(2) of the Act (D.C. Official Code § 31-3171.16(b)(2)), the Authority submitted its “Report to the Mayor and Council of the District of Columbia on Financial Sustainability” on December 13, 2013.

(c) The Authority considered a wide range of options for achieving financial self-sustainability. It adopted a broad-based assessment of all health insurance carriers in the District to assure the lowest percentage assessment possible for the Authority’s future funding.

 (d) Section 4(e)(1) of the Act (D.C. Official Code §31-3171.03(e)(1)) provides that “[t]he Authority is authorized to charge, through rulemaking:

                        (A) User fees;

            (B) Licensing fees; and

                                    (C) Other assessments on health carriers selling qualified dental plans or qualified health plans in the District, including qualified health plans and qualified dental plans sold outside the exchanges.”

(e) The bill would amend this section to clearly authorize the Authority to assess all health carriers doing business in the District, to utilize the recommended low-percentage, broad-based assessment.

(f)  Emergency action is required to allow the Authority to proceed with a broad-based assessment of all health carriers doing business in the District to ensure its financial sustainability by January 1, 2015.

Sec. 3. The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Health Benefit Exchange Authority Financial Sustainability Emergency Amendment Act of 2014 be adopted after a single reading.

 

            Sec. 4. This resolution shall take effect immediately.