Press Release Thursday, October 7, 1999 |
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WASHINGTON, D.C. - Consumers Union, the publisher of Consumer Reports
magazine, applauded the U.S House of Representatives today for siding with
consumers by passing the Norwood/Dingell managed care reform bill. But the
organization said it was extremely troubled by the so-called access legislation
that lawmakers attached to the Norwood/Dingell bill, legislation that would
undermine many of the protections contained in the bill.
"We are pleased that the House relented and passed the Norwood/Dingell bill,
the only managed care reform legislation that ensures all Americans have access
to quality care," said Adrienne Hahn, legislative counsel for Consumers
Union.
The Norwood/Dingell bill, which passed by a vote of 275 to 151, contains
liability provisions that guarantee managed care systems will be held fully
accountable for negligent behavior that results in injury or death. These
accountability provisions were far superior to other alternatives that the House
debated, Ms. Hahn said. The Norwood/Dingell bill represented the most
comprehensive and meaningful managed care reform bill before Congress. The bill
extends patient protections to 161 million Americans with private health
insurance coverage. It provides an external appeals process so that when an HMO
makes a treatment decision an outside entity can review that determination to
decide whether care was wrongfully terminated, denied or delayed.
Despite these important patient protections, Congress took a very dangerous
step when it passed the so-called access bill that threatens traditional health
insurance coverage. The new tax deductions for individuals, expanded medical
savings accounts, HealthMarts and Association Health Plans will not lead to
affordable health care. Tax deductions for individuals could make health
insurance less affordable and less available to people with existing health
conditions, since they actually undermine employer-provided coverage. Medical
savings accounts could, over time, increase deductibles for all insured people,
since they are expected to crowd-out of the market policies with deductibles in
the range of $200 to $250. HealthMarts and Association Health Plans are untried
and untested mechanisms that could undermine state efforts to broaden risk pools
and provide people with comprehensive coverage.
Therefore, Consumers Union plans to urge congressional conferees to remove
the "access" provisions from the bill, and either (1) limit the bill to the
managed care consumer protections, or (2) substitute for these flawed "access"
provisions steps that will make health coverage truly more affordable for
Americans. CU will urge conferees to consider, for example, allowing people to
buy-in to programs such as FEHBP, Medicare, and Medicaid; expanding coverage for
parents of CHIP children; and tax credits that would cover the full cost of
coverage for the poor (combined with comprehensive reforms of the individual
market).
Consumers Union, Publisher of Consumer Reports magazine, is
an independent nonprofit testing, educational and information organization
serving only the consumers. We are a comprehensive source of unbiased advice
about products and services, personal finance, health, nutrition and other
consumer concerns. Since 1936, our mission has been to test products, inform the
public and protect consumers.