Federal officials looking at how insurance market reforms under the health reform law may cause adverse selection consulted with a trade association representing companies involved in self-insurance.

Mike Ferguson

Following an earlier meeting with officials of the U.S. Department of Labor and the U.S. Department of Health and Human Services regarding current studies the agencies are completing under mandate by the Patient Protection and Affordable Care Act (PPACA), the agencies directed their contracted research organization, the Rand Corp., to confer with Self-Insurance Institute of America (SIIA) representatives, according to the organization. The SIIA represents the interests of companies involved in self-insurance and alternative risk transfer.

During a conference call, Rand Corp. researchers asked the SIIA representatives for information relating to self-insurance practices followed by employers, third-party administrators (TPA) and stop-loss insurance carriers.

“Apparently SIIA made a very positive impression during our earlier meeting with the DOL and HHS officials since they almost immediately decided it was important to connect us with their contracted researchers,” said SIIA chief operating officer Mike Ferguson. “We feel confident that the input provided to Rand effectively described the benefits of self-insurance while correcting common misperceptions.”

The DOL-produced study is intended to assess the financial solvency of self-insured health plans generally, while HHS is looking to compare self-insured health plans with fully insured plans and to determine the extent to which new insurance market reforms are likely to cause adverse selection in the large-group market, or to encourage small- and mid-sized employers to self-insure.

Both reports are scheduled to be published by the end of March and will be referred to congressional committees, which could prompt future legislation affecting self-insurance.