Health Insurance Quotes Reform Weeklys EasyToInsureME

DECEMBER 11, 2009

This Week in Health Reform

This
week Senate lawmakers continued to debate numerous proposed amendments
to Senate Majority Leader Harry Reid's (D-NV) health care reform bill.

An
updated analysis by our parent company shows that, with the proposed
health care reform legislation, across- the-board premiums will
increase significantly for younger and healthier people who purchase
insurance on the individual market or through small employer groups.

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Senate Negotiations

Senate
Continues Debate on Health Care Reform Bill: As Senate lawmakers
continued to debate through the weekend and voted on proposed
amendments, President Barack Obama encouraged this effort by visiting
Capital Hill on Sunday and urging lawmakers to put aside their
differences and pass the historic legislation. While the President did
not mention abortion or the government-run option specifically, those
issues remain particularly divisive and at the center of debate on the
Senate floor:

* Abortion - On Tuesday the Senate rejected
(54-45) an amendment proposed by Sen. Ben Nelson (D-NE) that would have
imposed restrictions on coverage of abortion services for people who
received subsidies to buy insurance. Sen. Nelson has indicated that he
will not support a health care reform bill that does not include
language restricting abortion coverage. Tuesday's vote puts into
question whether Sen. Reid has the 60 votes necessary to pass the
reform package.
* Government-Run Option - On Tuesday night a group
of 10 appointed Democratic Senate lawmakers announced a tentative
agreement in regards to the public option. In an effort to remove a
major hurdle to passing legislation this year, the group of negotiators
offered an alternative program to the government-run option that would
create several national insurance plans administered by private
companies but negotiated by the Office of Personnel Management, which
oversees health policies for federal workers. The negotiators said that
a government plan would only be created if private firms were unable to
deliver acceptable national policies.

The agreement would allow
individuals to buy into Medicare starting at age 55, and insurance
companies would face new regulations, including a requirement that they
spend at least 90 cents of every dollar collected in premiums on
medical services for customers.

In response to the agreement,
the American Hospital Association, the American Medical Association,
the American Federation of Hospitals - along with other health care
companies, including insurers and drug makers - expressed concerns over
the proposed Medicare expansion. Some also voiced concerns that the
agreement simply represents another form of a public option. Those in
opposition cite potential cost increases, low Medicare reimbursements
and greater government control over parts of the health care industry.
Hospital representatives said an expansion of Medicare would violate a
deal they reached with the White House this year to give up $155
billion in Medicare payments over the next decade. Furthermore, The
National Federation of Independent Business, a small-business
association, released a statement opposing the legislation as an
inadequate response to rising costs.

Currently Sen. Reid has
only released a few specific details about the agreement, and lawmakers
are hesitant to endorse the plan until it is better understood. Sen.
Joe Lieberman (I-CT) has indicated that the inclusion of a public
option trigger may be a possible deal breaker. Sen. Reid presented this
new agreement to the Congressional Budget Office (CBO) to be analyzed
and is currently waiting for the CBO costs estimates.

In
addition, on Wednesday Senate lawmakers debated an amendment offered by
Byron L. Dorgan (D-ND) that would allow for the importation of
prescription drugs from other countries. Should it pass, the measure
could threaten the pharmaceutical industry's support for President
Obama's health care reform. The pharmaceutical industry strongly
opposes allowing prescription drug imports, indicating that the risk
for counterfeit drugs would increase. While the amendment was supposed
to come to a vote on Wednesday, an agreement was not reached and debate
continued on Thursday.

Other Activities

Federal Insurers
Warn of Higher Premiums: The Association of Federal Health
Organizations , which includes federal employee-sponsored health
insurance companies and Associate Member Blue Cross and Blue Shield
Association, is starting to make waves on Capitol Hill with information
released in a November 25 report to the Office of Management and
Budget. The report indicates that health insurance premiums could go up
and benefits could be hurt due to impending fees on the insurance
industry and the excise tax on premiums above a certain amount.

Drug
Makers May See Increased Fees: Media reports indicate that the bill
emerging from the Senate may include fees on the pharmaceutical
industry that are greater than the $80 billion originally discussed in
June. Given that the House bill would cost drug makers about $140
billion, the eventual House-Senate bill is likely to include fees
exceeding $80 billion.

Public Opinion

Americans Oppose
Reform Plan: As special interest groups express concern over the latest
Senate proposal, polls continue to show that Americans are increasingly
worried about the impact of reform. The most recent Quinnipiac
University Poll indicates that Americans disapprove (52-38 percent) of
the health care reform proposal under consideration in Congress.
Furthermore, a Bloomberg National Poll indicates that 62 percent of
Americans say they are mostly pessimistic that they would benefit from
the bill.

Looking Ahead

Senate lawmakers will continue
working around the clock and weekends to debate and vote on the
proposed amendments. Sen. Reid is still pushing to have a final Senate
reform package put together by Christmas.