Utah Lawmakers Announce 10-Year Plan To Overhaul State Health Care System

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 19 Dec 2008 - 4:00 PDT

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Utah lawmakers on Tuesday during the final meeting of the Legislature's Health System Reform Task Force unveiled a plan to overhaul the state's health insurance market, the Salt Lake Tribune reports. The proposal, the first part of a 10-year health reform plan, would expand the range of health plans in the state by allowing HMOs and PPOs to more easily offer lower-cost coverage that is exempt from some state-mandated benefits. Plans that are exempt from state-mandated benefits would have to be offered through an Internet portal that allows state residents to compare insurers' rates, coverage and histories of honoring claims.

The plans also would require contributions from employers. Small businesses would be allowed to make contributions to employees' health savings accounts instead of offering benefits. Employees could not be denied coverage based on pre-existing health conditions, and insurers would be protected from an increase in costly claims through assistance from the Utah Health Re-Insurance Pool, a not-for-profit organization that would be created within the state's Department of Insurance. In addition, insurers would be required to offer a new basic benefit package called the Utah NetCare Basic Health Care Plan that is designed to provide coverage to workers between jobs and would be less costly than COBRA insurance. The proposal also would change the definition of a "small group" from a minimum of two employees to one, which would allow individuals to have access to "guaranteed issue" plans.

State Rep. David Clark (R), chair of the task force, said the plan is part of the state's larger long-term plan for a better health system, which includes health insurance reform, personal responsibility, transparency, value and maximizing tax advantages. He said, "This is a working document. It's a beginning point for us" (Rosetta, Salt Lake Tribune, 12/16).

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