Industry Groups Praise Bush, Pan AHPs

Runaway lawsuits have forced physicians to leave their practices in many locations, and they increase the cost of care by promoting use of defensive medicine, Trautwein says.

However, Bush drew criticism from some industry representatives for his support of AHPs, which would give small businesses a vehicle for banding together to offer health insurance exempt from state insurance regulation.

Although AHIA will work hard to support the president on issues such as tax-free insurance premiums for HSAs and refundable tax credits for individuals and families, it will work just as hard against AHPs, Kerley says.

"AHIA has grave concerns that current AHP legislation would lead to market segmentation, consumer fraud and insolvency," he says.

Some health care advocacy groups are criticizing the president's overall health care agenda.

Ron Pollack, executive director of Families USA, Washington, says only the wealthiest and healthiest people in America would receive health coverage as a result of enactment of the tax credit proposal.

"When the proposed tax credits lure the wealthiest and healthiest into high-deductible health plans, they will leave only the sicker and poorer in traditional insurance," Pollack says. "As a result, premiums for people who remain in traditional insurance, those who need health care the most, are likely to soar."