39 State AGs Say They Oppose Enzi Association Health Plan Bill, Saying Legislation Could Affect States' Regulation Authority

Main Category: Health Insurance / Medical Insurance
Article Date: 28 Apr 2006 - 5:00 PDT

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Thirty-nine state attorneys general on Tuesday sent a letter to the Senate expressing their opposition to a bill proposed by Senate Health, Education, Labor and Pensions Committee Chair Mike Enzi (R-Wyo.) that would allow small businesses to form association health plans under certain conditions, CongressDaily reports (CongressDaily, 4/26). The bill (S 1955) 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 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, 4/13).The attorneys general wrote, "Insurers of individual, small group and large group policies could ignore [state] requirements in favor of the bare-bones plans, subjecting consumers to reduced care and ever-increasing out-of-pocket expenses." The attorneys general said that the bill would exempt all insurance plans -- not just the new AHPs -- from state mandates (CongressDaily, 4/26). The bill's opponents -- including AARP, the American Cancer Society and the American Diabetes Association -- say it could result in worker discrimination and inadequate care for people with chronic diseases. Supporters of the bill, such as the National Federation of Independent Business, say it would make health insurance more affordable for businesses. Senate HELP committee spokesperson Craig Orfield said, "We're trying to provide small business with an opportunity to obtain better health insurance at more competitive rates without the burden of some of the regulatory mandates." The Senate is expected to vote on Enzi's bill within two weeks (Appleby, USA Today, 4/26).

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