Nevada to Obama: You can’t just waive the law

In a press release this afternoon from the Nevada Division of Insurance, the state basically told the president that his magic wand move to let people in the individual health insurance market keep their insurance, if they like it, was patently illegal under both state and federal law.

The statement from Jake Sunderland, public information officer for the Insurance Division concludes:

“Recently, President Barack Obama announced he would use his ‘enforcement discretion’ to allow insurers to renew health insurance plans that do not contain all of the ACA(Affordable Care Act)-mandated benefits rather than canceling those plans. The President’s transitional policy would allow certain current, non-ACA compliant plans to be renewed in 2014 for at least one additional year. However, the President’s announcement does not change or nullify existing federal and state laws.

“In considering the President’s announcement, the Division sought legal review from its counsel at the Nevada Office of the Attorney General. After thorough analysis of the law, it is concluded that the Commissioner does not have the discretion to allow such non-ACA compliant plans to be renewed in 2014 because to do so would conflict with both Nevada law and the ACA.”

Sunderland did note that state had already agreed to allow renewal of such policies for one year up to Dec. 31, effectively allow a year’s extension anyway. Almost 25,000 Nevadans have had their individual health policies canceled.

But Obama can’t make the law magically disappear.