Fresh off a new Congressional Budget Office scoring of their health care reform bill that drops the price tag from $1 trillion to just over $600 billion, Senate Health, Education, Labor and Pensions Committee members have returned to marking up the Affordable Health Choices Act with renewed enthusiasm -- at least from committee Democrats.
We are pleased to report that the CBO has scored it at $611.4 billion over 10 years, with the new coverage provisions scored at $597 billion -- a significant reduction from earlier estimates, said Sens. Edward Kennedy (D-Mass.) and Chris Dodd (D-Conn.) in a joint letter to committee members.
The new score comes with the addition of provisions for a strong, national public option and an employer mandate requiring employers to pay 60% of employees insurance costs or contribute $750 a year per full-time employee.
Diane Boyle, Association of Health Insurance Advisors executive vice president, doesnt share the senators enthusiasm. She points out that $750 wont cover 60% of some private insurance options, creating a cost shift from private insurance into a public program.
Really theyre not finding significant savings, Boyle says. Theyre shifting the cost over to the employer. I think the employer community is going to be up in arms over it Once you factor in the employer mandate thats how they got the reduced scoring.
Although AHIA is not necessarily opposed to an employer mandate, Boyle would rather find the savings elsewhere in reforming the system rather than shifting the costs to the employer.
Meanwhile, AHIA is gearing up along with the National Association of Health Underwriters, Council of Insurance Agents & Brokers and Independent Insurance Agents & Brokers of America for their July 15 Washington, D.C. Fly-In.
The associations are co-sponsoring the day of Capitol Hill meetings for brokers and advisers to speak directly with their state representatives on health care reform. We still maintain support for reforming the system, were just now starting to see some things laid on the table with a little more detail and we want to make sure we get the details right, says Boyle.
The latest count puts attendance at 930 people, says Janet Trautwein, executive vice president and CEO of NAHU, quite a few more than they were expecting. A quick non-scientific poll by EBA of a dozen brokers revealed most responders think its an important event and know at least one person going, but wont be able to make it themselves due to scheduling conflicts.
However, Rae Bunce, an employee benefit specialist with The Benefits Group of New England, says she wouldnt miss the opportunity to sit down with her local Vermont representatives to let them know the concerns shes hearing from the small groups she meets with on a daily basis. Many dont have access to the Internet and she fears how they would be impacted if brokers were out of the picture and they were left to direct their questions to Web sites or hotlines.
To cut out all brokers so they dont have any representation here, I think would actually hurt the businesses in Vermont I think its a great opportunity to go down, you have to have the voices be heard, she says. Whether you make a difference or not, you have to voice something or youre just going along with the status quo.
For more on the updated numbers from the HELP committee, listen to our podcast as Dodd and other committee Democrats discuss the bill. On a lighter note, if their ability to handle a press conference Q&A is any indication of government effectiveness, health care reform may be in trouble after all!
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2 Comment(s)
Posted by: Sherree | July 13, 2009 10:19 AM
I agree with you, Patti!
If reform passes with a "public plan" but removing the broker/agent from the picture...wouldn't that be like requiring Americans to work with the IRS without an accountant?
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Posted by: Patti G | July 8, 2009 8:38 AM
Just as the last time our country tried to reform our health care system, the role of the agents was left out of the discussion. We are somehow lumped together with the insurance carriers as the "bad guys" in a bloat health care delivery system.
Perhaps it is because our legislators really have no idea about the important services we perform. Those of us who specialize in health insurance will tell you that we work for our clients not the carriers. In fact, we are the only advocate a client has (unless they hire an attorney) to help them with claims disputes, billing errors and more. An employee whose salary is paid by a carrier has an allegence to his employer. Agents, while receiving commissions from the carriers are chosen by the people who are insured. As any agent can tell you, if the client is not satisfied with their service they can appoint another agent at any time. So we work, and work very hard, for our clients.
Agents survey employees to determine what benefits are needed, educate employers about their options in purchasing plans, research the market for the best plans, educate and enroll employees, monitor underwriting, assist in settling claims disputes and billing errors and then at renewal time, do this all over to make sure our client has the best value for his dollar
I am sure almost every one of us could tell you stories about saving people's lives. I can remember a frantic call from a psychiatrist asking for help getting her patient ( my client) admitted to a certain hospital. She was certain if he didn't get admitted, he was going to commit suicide. It was after 5:00 PM and I put in an emergency call to the plan's medical director. I spent hours negotiating between the carrier and the physician. We did get him admitted. When the employer called to thank me, I told her it was unnecessary. This is what I do. Someone is alive today because of me. This is what our legislators don't get.
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