Health Exchanges: Sale of Non-Health Insurance Products

In April 2014, NAIFA staff became aware that some state-run health exchanges are considering offering insurance products other than health and dental policies, such as life insurance, disability policies, and retirement plans. Although the ACA, federal regulation, and HHS interpretive guidance place limitations on the forms of insurance that can and cannot be offered through the federal and state exchanges, certain states are considering expanding the scope of insurance products that can be sold on their State-run health exchange beyond what appears to be the intent of the ACA.       
 
In Colorado, the Board of Directors for Connect for Health Colorado, the Colorado State health exchange, recently convened to discuss the possibility of offering life, legal, disability, and other forms of insurance through the exchange. In Minnesota, the State health exchange, MNsure, may consider offering individual retirement accounts.     
 
NAIFA is concerned that these state exchanges would be exceeding federal restrictions outlined in the ACA on the offering of non-health insurance products, and such an expansion of products offered could result in insurance producers having to compete with state-run programs offering life insurance policies, retirement options, and other services. 
 
So far, no state health exchange is offering non-health insurance products.