House GOP Patient Protection Act Ignores The
Uninsured
Feb 02, 1999
FOR IMMEDIATE RELEASE
February 2, 1999
CONTACT: Richard Coorsh
(202) 824-1787
mailto:rcoorsh@hiaa.org
The following statement was released today by Chip Kahn,
President of the Health Insurance Association of America (HIAA):
Sadly, the so-called Patient Protection Act introduced today by
House Republicans shows that both parties are equally adept at
ignoring the needs of the nation's 43.5 million uninsured.
With this legislation, House Republicans would place additional
financial hurdles before the uninsured. Their plan would raise the
cost of health insurance by mandating that all health plans have
both a point-of service feature and an external appeals process.
These provisions might be politically appealing, but the higher
costs associated with this government mandate would be passed on to
consumers in the form of higher premiums.
Additionally, the House Republicans' legislation reintroduces two
highly problematic proposals - "HealthMarts" purchasing
cooperatives, and multiple employer welfare arrangements ("MEWAs").
Unlike health insurance plans, HealthMarts would not have to comply
with numerous state requirements. As a result, HealthMarts would
attract healthier groups, thereby leaving state-regulated group
health insurance plans with sicker, higher cost people. Faced with
significant premium increases, these sicker groups likely would drop
their coverage, leading eventually to the collapse of small group
health insurance.
Most MEWAs currently in place provide employers with dependable
coverage. However, the allure of MEWAs has been tarnished by a
handful that have operated fraudulently, and that have stuck many
employers and consumers with hundreds of thousands of dollars in
unpaid medical bills. We are concerned that the House Republican
legislation would encourage the proliferation of fraudulent MEWAs by
exempting them from state regulation.
To its credit, the House Republican package would not allow for
punitive damages suits against HMOs. Also to its credit, it contains
medical malpractice reform and would expand the availability of
Medical Savings Accounts (MSAs). On balance, though, this bill would
raise consumers' costs, raise the number of uninsured, and impose
more government regulation on the nation's health plans.
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