Dow Jones Newswires Examines Debate Over Association Health Plans Bill

Main Category: Health Insurance / Medical Insurance
Article Date: 20 Apr 2006 - 14:00 PDT

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Dow Jones Business News on Thursday examined how a bill (S 1955) "that would pre-empt state-mandated benefits is pitting advocacy groups ... against powerful small-business lobbies" (Gerencher, Dow Jones Business News, 4/13). The bill, sponsored by Senate Health, Education, Labor and Pensions Committee Chair Mike Enzi (R-Wyo.), would allow small businesses and trade associations to join together to offer group health coverage on a statewide or nationwide basis. The bill would allow supervision of the plans to remain with state officials rather than the Department of Labor. In addition, while the bill would permit business and trade associations to pool their members independently, they would not be allowed to establish self-insured plans but rather would have to provide benefits through a fully funded plan. Under the bill, insurers would also be permitted to sell plans to businesses and individuals that do not meet current state benefits requirements (Kaiser Daily Health Policy Report, 3/16). Supporters argue that the bill would enable more people to purchase health coverage. Mary Trupo, director of policy issues for the National Association of Realtors, said, "[w]e think moving ahead and getting started now to get people insured and then continuing to push to refine the bill is better than not moving forward and continuing to have millions of people in this country who are uninsured." However, Hunter Limbaugh, chair of government affairs and advocacy for the American Diabetes Association, said the bill would undo 10 years of work securing coverage in 46 states and Washington, D.C., for diabetes education and supplies. Ahaviah Glaser, senior counsel for the National Women's Law Center, said states set coverage standards for prescription contraceptives, cancer screenings and maternity care that are necessary to make health insurance more equal for women. She added, "You're talking about a bill that really turns health insurance upside down" (Dow Jones Business News, 4/13).

State Official Concerns
In related news, the AP/Long Island Newsday on Tuesday examined concerns from state insurance commissioners and state officials that the bill "would strip states of their ability to set minimum coverage requirements for health insurance plans" and "could in fact raise costs for many customers." In letters to the Associated Press, Minnesota Attorney General Mike Hatch (D) and officials from California, Florida, Nevada, New York, Rhode Island, Washington state and Wisconsin said that they oppose the legislation or have concerns about the current form of the bill. Most of the letters focused on a provision in the bill that would allow health insurers to avoid minimum coverage requirements established by state laws. Hatch said that such requirements are necessary to ensure adequate coverage. "There are companies that are more than happy to sell policies that don't have maternity coverage," he said. However, Enzi spokesperson Coy Knobel said that the provision would help reduce the cost of health insurance for small businesses. "My point is, you aren't going to get any benefits if you can't afford health insurance," Knobel said, adding, "You need to be able to offer some sort of coverage, and in order to do that you can't have everything mandated" (Neary, AP/Long Island Newsday, 4/18).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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