Federal Insurance Office Elimination Act Introduced in Congress

April 29, 2025 / 3 min read

On January 23, 2025, Representative Troy Downing (R -Montana) introduced H.R. 643, known as the “Federal Insurance Office Elimination Act,”^[1] which proposes to eliminate both the Federal Insurance Office of the Department of the Treasury and the position of the Director of the Federal Insurance Office.^[2] As of April 16, 2025, H.R. 643 has 19 co-sponsors.^[3]Of likely interest to many of our blog readers, it is noted that H.R. 643 does not contain any proposals impacting the Medicare program or Medicare secondary payer (MSP) compliance.^[4]

The author provides a general overview of H.R. 643 as follows:

Federal Insurance Office (FIO) - responsibilities/limitations

The FIO was established in 2010 under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act.^[5]The FIO was established within the Department of the Treasury and the Director of the FIO is appointed by the Secretary of the Treasury.^[6]

Pursuant to 31 USC § 313 (c), the FIO, in general, is tasked with a wide range of responsibilities. For example, the FIO is responsible for monitoring “all aspects of the insurance industry,” consulting with states regarding insurance matters of national and international importance, determining whether state insurance measures are preempted by covered agreements, and making recommendations to the Financial Stability Oversight Council whether to designate an insurer as an entity subject to regulation under Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act.^[7] In addition, per 31 USC § 313 (c), the FIO is also tasked with monitoring the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, assisting the Secretary of the Treasury with administration of the Terrorism Risk Insurance Program, serving as an advisory member of the Financial Stability Oversight Council, and advising the Secretary of the Treasury on important national and international insurance matters.^[8]

While the FIO has many responsibilities per 31 USC § 313 (c), it is noted that this statute also provides several limitations on the scope of the FIO’s purview. For instance, 31 USC § 313 (j) notes that 31 USC § 313 does not preempt any state insurance measures governing rates, premiums, underwriting, or sales practices; state coverage requirements for insurance; the application of state antitrust laws to the business of insurance; or any state measures governing the solvency of an insurer (unless that measure results in less favorable treatment of a non-United States insurer).^[9] In addition, it is notable that pursuant to 31 USC § 313 (d), health insurance is specifically excluded from the scope of the FIO.^[10]

H.R. 643 proposes to eliminate the Federal Insurance Office

As proposed, H.R. 643’s stated intent is “[t]o eliminate the Federal Insurance Office of the Department of the Treasury, and for other purposes.”^[11]Under the text of the bill, the Federal Insurance Office of the Department of the Treasury and the position of the Director of the Federal Insurance Office would be eliminated. Provisions of the bill would remove references to the Federal Insurance Office within the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.).^[12]

In terms of support, a March 25, 2025 article from Carrier Management noted that H.R. 643 has the support of the National Association of Professional Insurance Agents (PIA), the National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents & Brokers of America (Big “I”).^[13] Proponents of the bill argue, in part, that the FIO stands in opposition to the role of the states as the primary regulators of the insurance industry.^[14]Conversely, those opposed to the bill note, in part, that the FIO plays an important role in allowing the federal government to investigate and report on important insurance issues, including climate disasters.^[15]

Please do not hesitate to contact the author if you have any questions.

[1] https://www.congress.gov/bill/119th-congress/house-bill/643/text

[2] Id.

[3] https://www.congress.gov/bill/119th-congress/house-bill/643/all-info

[4] In this regard, a review of the FIO’s statutory background, the FIO’s website, and the September 2024 FIO Annual Report does not identify any link between the FIO and Medicare. https://www.hhs.gov/about/agencies/hhs-agencies-and-offices/index.html Additionally, 31 USC §313(d) specifically excludes health insurance from the scope of the FIO. With Medicare being a federal health insurance program, Medicare would be beyond the purview of the FIO. Further, while the FIO is established under the Department of the Treasury, Medicare is administered by the Centers for Medicare and Medicaid Services (CMS), a federal agency within the Department of Health and Human Services (HHS).

[5] Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. No111-203, Title V, Sec. 313.

[6] 31 U.S. Code § 313 (a).

[7] 31 U.S. Code § 313 (c).

[8]Id.

[9]31 U.S. Code § 313 (j).

[10]31 U.S. Code § 313 (d)(1).

[11] https://www.congress.gov/bill/119th-congress/house-bill/643/text

[12] Id.

[13] Carrier Management, NAIC, Legislators Push to Abolish the Federal Insurance Office (March 25, 2025).

[14] National Association of Insurance Commissioners, NAIC Announces 2025 Federal Legislative and Regulatory Priorities (March 21, 2025)

[15] Bailey, D. (2025, January 28). Called ‘duplicative bureaucracy,’ Federal Insurance Office is targeted. InsuranceNewsNet.