Press Release Thursday, July 15, 1999 |
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WASHINGTON, DC - As the Senate prepares to approve a controversial bill aimed
at reforming health maintenance organizations (HMOs) and other managed care
plans, Consumers Union, the publisher of Consumer Reports magazine, says the
bill is a phony cure for what ails millions of people in HMOs.
"The supporters of this bill have put on quite a medicine show to hawk the
bill as a cure for problems with HMOs, but the bill would actually do more harm
than good," said Adrienne Hahn, legislative counsel for Consumers Union, which
is recommending that the president veto the bill.
"The Senate bill would take away the rights of millions of patients who are
currently entitled to an independent review of decisions made by their health
plans," said Hahn. "18 states have passed laws to ensure that patients have
access to a truly independent external review process when they have a dispute
with their HMO. But the Senate bill would wipe out the state laws. Under the
Senate bill, the health plans are left in charge of choosing the outside body
that appoints the reviewer for the patient's claim. That means the very health
plans that are being challenged get to select the so-called independent entity
that appoints the reviewer. The Senate bill leaves the fox guarding the hen
house."
Another fatal flaw in the Senate bill is that it excludes 113 million
Americans from the few patient protections contained in the bill. It also fails
to provide that managed systems will be held accountable for the quality of care
they deliver. All of the other reforms in this bill are virtually meaningless if
a patient cannot hold the HMO accountable for its decisions. Plus, under the
guise of promoting affordable health insurance coverage, the Senate bill
includes an expansion of the Medical Savings Accounts (MSAs) demonstration
project. MSAs increase the ranks of underinsured consumers who face large
out-of-pocket health care costs. MSAs drive-up health care premiums for those
seeking traditional low-deductible coverage and even drive them off the
market.
"The Senate missed a genuine opportunity to approve meaningful patient
protections by not passing S. 6, the real Patient Bill of Rights," said
Hahn.
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