Agents Win Key Health Reform Provision
As reported by National Underwriter, insurance agents have won a critical change in the House Energy and Commerce Committee version of healthcare reform legislation.
Through language negotiated by conservative Democrats as the House prepared to leave July 31, agents won explicit authority to sell within the health insurance exchanges that would be created under the legislation.
The provision in the bill reported out by the E&C Committee would also give agents the authority to sell the so-called public plan in the event that such entities are created under the final version of the legislation, according to officials of the Independent Insurance Agents and Brokers of America.
The key amendment to the E&C bill was added at the request of Rep. Charlie Melancon, D-La., Rep. Baron Hill, D-Ind., and Mike Ross, D-Ark., according to IIABA officials.
Other provisions sought by agents included in the E&C bill would double the small-business exemption from the employer mandate to $500,000 in payroll, from the former $250,000, and would add language explicitly allowing the creation of cooperatives, although the public plan is still in the bill.
They also cautioned that House Democratic leadership has given “no assurances” that the final bill that goes to the House floor in September would contain the provisions. That is because the E&C bill must be reconciled with versions of the legislation reported out by the House Ways and Means Committee and the Education and Labor Committee.
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As I said in an earlier blog the public plan option would be unfair competition to private health plans IF agent commissions and other items like advertising costs were not included in the public plan option's costs. Now it seems possible that the public plan option may provide a fair competitor to private plans. It all depends on what happens in the conference committees which reconcile differences in the various bills that are passed by the House and Senate committees.
Stay tuned and participate in the debate on your health care future...
Showing posts with label public plan option. Show all posts
Showing posts with label public plan option. Show all posts
Monday, August 17, 2009
Co-ops may be the compromise answer
Details on Co-ops
Kathy Sebelius, Secretary of the U.S. Dept of Health and Human Services, said the White House would be open to co-ops instead of a public option — a sign that Democrats want a compromise so they can declare a victory.
Under a proposal by Sen. Kent Conrad, D-N.D., consumer-owned nonprofit cooperatives would sell insurance in competition with private industry, not unlike the way electric and agriculture co-ops operate, especially in rural states such as his own.
With $3 billion to $4 billion in initial support from the government, the co-ops would operate under a national structure with state affiliates, but independent of the government. They would be required to maintain the type of financial reserves that private companies are required to keep in case of unexpectedly high claims.
"I think there will be a competitor to private insurers," Sebelius said. "That's really the essential part, is you don't turn over the whole new marketplace to private insurance companies and trust them to do the right thing."
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Co-ops may be the best compromise solution to still get the competition needed to reign in health care costs. In the end Co-ops may gain some votes from Republicans and may lose a few of the hardest line liberals. It should provide a net gain. But, we still need other elelments to achieve real reform - i.e.- payment reform based on episodes of care, quality-based incentives and incentives to implement LEAN techniques. See previous posts for details on these items.
Kathy Sebelius, Secretary of the U.S. Dept of Health and Human Services, said the White House would be open to co-ops instead of a public option — a sign that Democrats want a compromise so they can declare a victory.
Under a proposal by Sen. Kent Conrad, D-N.D., consumer-owned nonprofit cooperatives would sell insurance in competition with private industry, not unlike the way electric and agriculture co-ops operate, especially in rural states such as his own.
With $3 billion to $4 billion in initial support from the government, the co-ops would operate under a national structure with state affiliates, but independent of the government. They would be required to maintain the type of financial reserves that private companies are required to keep in case of unexpectedly high claims.
"I think there will be a competitor to private insurers," Sebelius said. "That's really the essential part, is you don't turn over the whole new marketplace to private insurance companies and trust them to do the right thing."
--------------
Co-ops may be the best compromise solution to still get the competition needed to reign in health care costs. In the end Co-ops may gain some votes from Republicans and may lose a few of the hardest line liberals. It should provide a net gain. But, we still need other elelments to achieve real reform - i.e.- payment reform based on episodes of care, quality-based incentives and incentives to implement LEAN techniques. See previous posts for details on these items.
Sunday, August 16, 2009
"The Public Plan Option Not Essential to Reform"- White House
As I've long predicted..... The public plan option is not a deal breaker, but a negotiating tool for Obama.
For more details: http://news.yahoo.com/s/politico/20090816/pl_politico/26158
Excerpt---- President Barack Obama and his top aides are signaling that they’re prepared to drop a government insurance option from a final health-reform deal if that’s what’s needed to strike a compromise on Obama’s top legislative priority.
Health and Human Services Secretary Kathleen Sebelius said Sunday that the public option was “not the essential element” of the overhaul. A day earlier, Obama downplayed the public option during a Colorado town hall meeting, saying it was “just one sliver” of the debate.
He even chided Democratic supporters and Republican critics for becoming “so fixated on this that they forget everything else” — a dig at some liberals in his own party who have made the public option the main rallying cry of the health reform debate.
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The President is right- the public plan option has been a fixation for Dems and a smokescreen for the GOP to avoid the real issues of payment reform, cost control and expanding access.
Now hopefully they'll all get to work on the real issues.... see an earlier post for that analysis.
For more details: http://news.yahoo.com/s/politico/20090816/pl_politico/26158
Excerpt---- President Barack Obama and his top aides are signaling that they’re prepared to drop a government insurance option from a final health-reform deal if that’s what’s needed to strike a compromise on Obama’s top legislative priority.
Health and Human Services Secretary Kathleen Sebelius said Sunday that the public option was “not the essential element” of the overhaul. A day earlier, Obama downplayed the public option during a Colorado town hall meeting, saying it was “just one sliver” of the debate.
He even chided Democratic supporters and Republican critics for becoming “so fixated on this that they forget everything else” — a dig at some liberals in his own party who have made the public option the main rallying cry of the health reform debate.
----------
The President is right- the public plan option has been a fixation for Dems and a smokescreen for the GOP to avoid the real issues of payment reform, cost control and expanding access.
Now hopefully they'll all get to work on the real issues.... see an earlier post for that analysis.
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